institution report no pub date 94 varies. …1. general description of the firm 1.1 general...

DOCUMENT RESUME

ED 379 490 CE 068 314

AUTHOR Mattei, Patrizia; And OthersTITLE Training in the Retail Trade in Italy. Report for the

FORCE Programme. First Edition.INSTITUTION European Centre for the Development of Vocational

Training, Berlin (Germany).REPORT NO ISBN-92826-8139-4PUB DATE 94NOTE 95p.; For reports on other countries, see ED 372

241-243, CE 068 309-313, and CE 068 318. Cover titlevaries.

AVAILABLE FROM UNIPUB, 4661-F Assembly Drive, Lanham, MD 20706-4391(Catalogue No. HX-81-93-907-EN-C: 8 European CurrencyUnits).

PUB TYPE Reports - Research /Technical (143)

EDRS PRICE MF01/PC04 Plus Postage.DESCRIPTORS Case Studies; Corporate Education; *Distributive

Education; Educational Improvement; EducationalNeeds; "Educational Trends; *Education WorkRelationship; Employment Patterns; Foreign Countries;*Job Training; Labor Market; Merchandising; PersonnelManagement; Postsecondary Education; Private Sector;Recruitment; *Retailing; Sales Occupations; SecondaryEducation; Tables (Data); *Training Methods; TrainingObjectives; Trend Analysis

IDENTIFIERS *Italy

An international team of researchers studied thefollowing aspects of training in Italy's retail sector: structure andcharacteristics, institutional and social context, employment andlabor, changIng conditions and their implications for skillrequirements, and training and recruitment. Data were collected froman analysis of social and labor/employment statistics, literaturereview, and case studies of six retailers. Most were largedistribution chains; however, two represented cooperative /consortialrganizations. At all the companies studied, training was regarded asa vital contributor to firm development. Strategic planning/design oftraining was particularly advanced and well established at the majorlarge-scale distribution firms, where planning involved all levels ofstaff through "improvement groups." Training was no longer reservednearly exclusively for managerial staff but had instead begun toinvolve all staff regardless of type or work done or hours worked.Training was used to develop job skills and also to transmit companyaims and values to staff. It was generally conducted in theworkplace, and each firm had training department/divisionsresponsible for training. Cost-benefit analyses have favored"ontinuation /expansion of training. Training was sometimes partiallyfunded through the European Social Fund and incentives under traineecontracts. (Contains 39 tables/figures and 31 references.) (MN)

rn

CI \N

European Commission

RETAIL SECTOR

U S DEPARTMENT OF EDUCATION0q.ce or Ec.cat,onal Fieseartn a-ci tmoove flea

EDUCATIONAL RESOURCES INFORMATIONCENTER (ERIC)

This document has been reproduced asreceived from the person or organizationoriginating itMinor chances have been made toimprove reproduction quality

Points of view or opinions stated in thisdocument do not necessarily representofficial OERI position or policy

I 0

PERMISSION TO REPRODUCE THIS

6ILI

MATERIAL HAS BEEN GRANTED BYCI

%,,--;. ?-0co

cg

TO THE EDUCATIONAL RESOURCES

INFORMATION CENTER (ERIC).- iti" 1re ;_-

CI -0. c.0 0'0 0)2 .gCoO e

BEST COPY AVAILABLE

4.

O 0

oD-0

E tr;

Eo '52_, 0

oC0E

X0K. I

.0 u3 OC LL

RETAIL SECTOR

TRAINING IN THE RETAILTRADEIN ITALY

REPORT FOR THE FORCE PROGRAMME

drawn up byPatrizia Mattel

Alessandra GelfoLaura MaranoDaniela Tebaidi

Forter Confcommercio

1992

First edition, Berlin 1994Published by:

CEDEFOP European Centre for the Development of Vocational Training,Jean Monnet House, Bundesallee 22, D-10717 Berlin

Fax 49-30 + 88 4121 22Tel. 49-30 + 88 41 20 Telex 18 41 63 eucen d

The Centre was established by Regulation (EEC) No 337/75of the Council of the European Communities

3

Cataloguing data can be found at the end of this publication.

Luxembourg: Office for Official Publications of the European Communities, 1994

ISBN 92-826-8139-4

ECSC-EC-EAEC, Brussels Luxembourg, 1994

Reproduction is authorized, except for commercial purposes, provided the s"urce isacknowledged.

Printed in Belgium

FORCE

Formation continue en EuropeCommission of the European Communities

TASK FORCEHuman Resources, Education, Training and Youth

Rue de la Loi, 200; B-1049 Bruxelles

THE IDEA FORCEThe future economic strength and the potential for social progress of the European Communitydepends on a consistent impovement in the competence and qualifications of its 132.000.000 labourforce. Better continuing vocational training is one of the essential conditions for the success of theSingle Market 1993.The European Commission is determined to support and give fresh impetus to the efforts which com-panies throughout the Community are making to improve continuing training.FORCE is the European Community's action programme for the development of continuing vocationaltraining. It focussed on companies, especially on small and medium-sized companies. it involves train-ers and training bodies, employer and union representatives everyone concerned with improving thecompetence of the labour force.

WHAT DOES FORCE OFFER?FORCE promotes working partnerships in continuing training between companies, training bodies,public authorities and social partners.These will include: supporting continuing training innovation through a European transnational net-work, an exchange programme, transnational and transfrontier pilot projects and projects concernedwith the evolution of qualifications; assuring closer policy co-operation between Member States byevolving a common statistical means of analysing what is being done in terms of continuing training,through regular analysis of relevant contractual policy and collective agreements, and through enquir-ies into sectoral needs; supporting the establishment of regional consortia and transnational continuingtraining partnerships which specialise in transferring exemplary good practice to economically weakregions.

JOININGYou can take pa, t in the FORCE network and apply for financial assistance to join its innovation andtransfer exchanges and projects if you are:a large, medium-sized or small company, a training body working with industry orcommerce, an employer or trade union body, a training or human resource expertor manager.Through FORCE you can help improve continuing training in your company, sector or local labourmarket. At the same time you can help to contribute to the improvement and availability of continuingtraining and thus to shaping the European Community.

CEDEFOP

European Centre for the Development of Vocational TrainingJean Monnet House, Bundesallee 22, 0-10717 Berlin

Institutional status

CEDEFOP is an autonomous body, independent of the departments of the Commission of the EuropeanCommunities, but its task and activities are closely integrated with those of the Commission, to whichthe Centre contributes its technical and scientific expertise.

Working guidelines for the Centre are laid down by its Management Board, whose members repres-ent the EC Commission (3), trade unions (12) employers' organizations (12) and governments (12).The Management Board decides on the Work Programme, draws up and approves budgets andadopts the Annual Report. 2

The members of the Management Board are appointed by the organizations they represent andremain in office for two years. The chairmanship of the Board changes each year.

Institutional tasks

Information:In the field of vocational training, information is one of the Centre's vital tasks. Its documentation serviceand a constantly updated bibliographical database receive information from a network of nationalcorrespondents, and the information is then made available to a very wide audience, in part via highlysophisticated computerized channels. Its carefully planned publishing policy also ensures that theCentre's voice is heard on major issues in the field of vocational training. It produces its own regularpublications (»Vocational Training«, »CEDEFOP flash« and »CEDEFOP flash special«) and occasionalpublications such as research reports, monographs and manuals.

Research:CEDEFOP, as a centre for the promotion and coordination of research within the Community, providessupport in the form of information, expertise and encouragement for the planning and implementationof vocational training initiatives in Member States. In so doing it serves as a focus for innovation.

Consultation:CEDEFOP, as an organization supporting the Commission, has the task of promoting a concertedapproach to vocational training problems. It takes every opportunity to promote and encourage train-ing.

5

ACKNOWLEDGEMENTS

This study was carried out in the framework of theEuropean Retail Trade Sector Study, within the ECFORCE programme, and conducted by a CentralTeam made up mainly of member centres of 'EURO-N ET Work & Education", under the responsibility ofthe CIREM Foundation in Barcelona.

The Central team was composed of Olivier Bertrand(Cereq, Paris), Oriol Homs (CIREM, Barcelona),Wilfried Kruse (S.F.S. Dortmund), Marisa Mendez-Vigo (CIREM, Barcelona) and Harry van den Tilla-art (ITS, Nijmegen), in close collaboration with TinaBertzeletou from CEDEFOP, Berlin.

The project team would like to thank the companieswho gave access for research, and whose staff pro-vided the information and help which enabled us towrite the case studies. We very much appreciate thetime and effort which were invested so generously.

We would also like to thank the employers'organiza-tions and trade unions, and their representatives,who contributed to the research by making sugges-tions for case studies, attending meetings and com-menting on the draft report.

Those involved were:

FISASCAT-CISLVia Livenza, 700198 ROME

Marco Cesi ioGianni BarcttaGiuseppe SilvestroSalvatore Falcone

CISL NAZIONALEVia Po, 2100198 ROME. Augusto Giogione

UILTUCS-UILVia Nizza, 5900198 ROME

Parmenio StroppaMichele MalerbaAntonio ZilliFabrizio ZampagniAntonio Vargiu

FILCAMS-CGILVia Buonarroti, 3700185 ROME

Ivano CorrainiRenata BagatinClaudio TrevesClaudio Bazzichetto

CON FCOMMERCIOP.zza G. G. Belli, 200153 ROME

Basilio Mussolin

CESCOT-CONFESERCENTIVia Farini, 5ROME

Franco Raffo

FEDERCONSUM0- CON FCOOPERATIVEP.zza della Liberta, 1300192 ROME

Fausto PasqualittiElisabetta Vicino

INFORCOOPVia G. Tomassetti, 200161 ROME

Gabriella Vinci

CON FAPIVia Colonna Antonina, 5200186 ROME

Armando Occhipinti

77

CONiENTS

PART 1 - SECTORAL CONTEXT PageEMPLOYMENT, WORK AND TRAINING IN ITALIAN RETAILING1. Definition and limits of the sector 13

2. Structure and characteristics of retailing 13

2.1 Historical development of the retail trade sector 13

2.2 Official definitions of retail trade classifications 13

2.3 Corporate structure 14

3. The social and institutional context 18

3.1 Italian legislation regarding the retail trade sector 18

3.2 The function of the social partners .19

4. Employment and labour 205. Changing conditions and their implications for skill requirements

and training 245.1 Impact of new technologies in the retail trade sector 24

6. Training and recruitment 266.1 The Italian educational system 266.2 The Italian vocational training system 26

7. Ck)nclusions 28

PART 2 - CASE STUDIESANALYSIS OF ITALIAN CASE STUDIESRI NASCENTE GROUP 31Foreword 311. General description of the firm 31

1.1 General information 31

1.2 Short history and recent developments in group strategy 31

1.3 Structure of the firm 331.4 Human resources 33

2. Training policy 332.1 Historical development and current situation of training strategy 332.2 iistorical development and current situation of training structure 342.3 Participation of trade union organizations in training policies 342.4 Description of major programmes 35

2.4.1 The 'ARIAN NA" multimedia interactive training project 352.4.2 Training of "pupils" 352.4.3 The Master for buyers 362.4.4 Quality group animators 36

Annexes 373. "La Rinascente" in Piazza Duomo, Milan 39

3.1 General description of the sales outlet 393.2 Human resources 393.3 Description of major programmes AO

4. Evaluations 41

CONAD

Foreword

1. General description of the firm

1.1 General information

1.2 Short history and recent developments in the Conad strategy

1.3 Structure of the firm

2. Training policy

2.1 Historical development and current situation of training strategy

2.2 Historical development and current situation of training structure

2.3 Participation of trade union organizations in training policies

2.4 Description of major p-ogrammes

3. The Ari cooperative in Rome


3.2 Human resources

3.3 Current situation of training strategy

3.4 Current situation of training structure

4. The Pianeta hypermarket in Rome

4.1 General description of the outlet

4.2 Human resources

4.3 Training

5. Evaluations

COIN S. P. A.


. 1.1 General information

1.2 Short history and recent developments in the COIN strategy


1.4 Human resources

2. Training policy


2.2 Current situation of the training structure

2.3 Participation of trade union organizations in training policy

2.4 Description of major programmes

3. The COIN branch in Rome

3.1 General description of the sales outlet

3.2 Human resources

3.3 Training

4. Evaluations

PAM GROUP

Foreword



1.2 Short history and recent developments in the Parn strategy


1.4 Human resources

2. Training policy


2.2 Historical development and current situation of training structure

2.3 Participation of trade union organizations in training policy

3. Silos S. p. A.


3.2 Human resources

3.3 Training

4. The Silos hypermarket of Parma

65

65

65

65

65

664.1 General description of the sales outlet 664.2 Human resources 664.3 Training 67

685. Evaluations

DESPAR iTAL1A 71

1. General description of the firm - 711.1 General information :711.2 Recent strategy developments 71

1.3 Structure of the firm .722. Training policy 73

2.1 Historical development and current situation of training strategy 732.2 Historical development and current situation of training structure 74

2.3 Participation of trade union organizations in training policy 743. The Seveso CEDI (SADAS) 74

3.1 General description of the sales outlet 74

3.2 Training 744. Evaluations 75

PRENATAL S. P.A. 771. General description of the firm 77

1.1 General information 771.2 Short history and recent developments in Prenatal's strategy 771.3 Structure of the firm 781.4 Human resources 79

2. Training policy 81

2.1 Historical development and current situation of training strategy 81

2.2 Historical development and current situation in training structure 822.3 New technologies, law protecting employees and consumers,

changes in sales strategy, internationalization, etc.,

and their impact on training 822.4 Participation of trade union organizations in training policy 832.5 Description of major programmes 84

3. The Prenatal shop in Bergamo 863.1 General information 863.2 Human resources 863.3 Training 87

4. Evaluations 88

1Q

PART 3 -TRENDSCONCLUSIONS

1. Planning and design of training

2. The staff affected by training

3. Content, methods and organization

4. Costs, financing and evolution

BIBLIOGRAPHY

ANNEXL Comments by trade union representatives on the research report

1.1 Comments from FILCAMS-CGIL on the research report

by Giuseppe Silvestro

1.2 Comments from UILTUCS-UIL on the research report

by Antonio Zilli and Fabrizio Zampagni

1.3 Comments from FILCAMS-CGIL on the research report

by Claudio Treves

11

PART 1:

EMPLOYMENT, WORKAND TRAINING INITALIAN RETAILING

1. Definition and limits of the sector

2. Structure and characteristics ofretailing

3. The social and institutional context

4. Employment and labour

S. Changing conditions and theirimplications for skill requirementsand training

6. Training and recruitment

7. Conclusions

, 12

EMPLOYMENT, WORK AND TRAININGIN ITALIAN RETAILING

1. Definition and limits of the sectorIn Italy, retail trade can be defined as the activityexercised by whoever professionally buys goods inhis own -.ame and for his own account and resellsthem directly to the end user at a fixed location or byanother means of distribution.

As regards the European classification of industries,the Italian definition of the retail trade, according tothe Ministry of Industry, Trade and Handicraft, ex-cludes bakeries and confectioneries but includesthe sale of cars, motorcycles and watercrafts as wellas perrol stations.

Moreover ISTAT (the Central Institute of Statistics),which is the official source of statistic data regard-ing the workforce, places trade employees into awider category of trade, hotels, catering and enter-tainment. The latter term includes the following cat-egories: bars, cafes, restaurants, dancing halls andbathing establishments.

2. Structure and characteristics ofretailing

23 Historical development, of the retailtrade sectorAt the end of World War II, the Italian distributionsystem found itself in the midst of very serious prob-lems which had to be solved. in those years, in fact,the division of the country and the crisis in the trans-port system had crippled commercial exchangeswithin regions and between North and South,favouring the proliferation of the black market.Moreover, the war had caused a drop in per capitaconsumption and forced a concentration of this con-sumption mainly on indispensable goods such asfood, while the indicators of social affluence, suchas private means of transport, communicationinstruments and so-called unnecessary expenses,almost did not exist.

The distribution system was composed almost exclu-sively of small-scale traditional shops, with only lim-ited cases of dependent work (16 % of total employ-ment).Economic policies in the 50s concentrated on thedevelopment of the industrial sector, withdrawingresources from economic activities which wouldh']ve focused on the domestic market.It was a strategy which left no space to the commer-cial sector, giving it merely the role of a potentialoccupational refuge.

A considerable development of the tertiary marketstarted in the 60s, the years of the so-called "eco-nomic miracle".The comprehensive improvement which then tookplace in the Italian economic system created spacefor increases in consumption of food as well as non-food nroducts.The cc. tdii ions which were then cr-,ated favoured achange in the distribution syste.. bringing it on apar with systems in other European countries.However, the favourable economic trend was notenough to create an evolutive dynamic process.'fheenormous potential for profit, represented by theboom in demand for trade services, was utilized

prevalently to multiply and degrade the old distri-bution forms, leading to excess capacity and pulver-ization.

In spite of this negative tendency, this very periodand the whole of the 70s witnessed developmentdynamics which unfolded differently both in thefood sector versus the non-food sector and in theNorth versus the South of Italy.In fact, especially in the northern regions, greaternumbers of large-scale firms opened, often throughthe conversion of "traditional" operators.The structures and the organized retail trade formsunderwent further diversification, as shown by thespread of hypermarkets, discount stores, shoppingcentres and mail-order firms.

But it is above all with the beginning of the 80s thateconomical, social and traditional factors createdconditions leading to a real "revolution"in the Italiandistri' cation system.The appearance of new models of consumption,from body-building to electronic music, from the"do-it-yourself" trend to the health movement, anincrease in cultural levels and a growing need forself- assertion have made consumers harder toplease and also more selective when it comes tosatisfying their own needs.

Consequently trade has changed from a systemfocusing on quantity and standardization to onebased on quality and specialization.If these changes have favoured, on the one hand,small-scale initiatives through the establishment ofshops specialized in products and services, they havealso reinforced the large-scale retailers throughthe creation of new organizational and manage-ment models.Besides the opening of new branches of large-scaleretailers, we are currently witnessing an increase infranchising formulas, in forms of cooperation andassociation, both horizontally (purchase groups) aswell as vertically (voluntary chains).

Other factors affecting the development of large-scale retailing are:

the introduction of new technologiesthe introduction of modern marketing policiesthe offer of an ever growing variety of services(accessibility, range, customer servicesthe specialization tendency, both in hypermarketswith single sale units for specialized products(store-within-store), and in big specialized storessuch as DlYs (do-it-yourself) and garden centresthe sale of brand-name products in competitionwith non-brand-name products.

In conclusion we can affirm that commerce in Italytoday has made remarkable progress in closing inon the tendencies seen in other European countries,even if it is still on a shaky entrepreneurial level andexhibits a strong dualism between North and South.

2.2 Official definitions of retail tradeclassificationsThe official definitions of retail trade classificationsin Italy have been agreed upon by a study team of

13

13

t-

the Ministry of Industry, Trade and Handicraft withthe participation of regional experts, ISTAT, sectoralassociations and research institutes.

"Grande Magazzino" (department store):Retailing shop operating in the non-food sectorwith a sales area of more than 400 m2 and at least5 distinct departments (besides an optional asso-ciated food department), each selling articlesbelonging to different marketable goods sectors,especially of large-scale consumption.

"Supermercato" (supermarket):Retailing shop operating in the food sector (autono-mous o as a division of a department store) organ-ized mostly as a self-service unit with payment at theexit and with a sales area of more than 400m'offer-ing a broad range of ready-made products oflarge-scale consumption as well as some non-foodproducts for every-day domestic use.

"lpermercato" (hypermarket):Retailing shop organized as a self-service unit withpayment at the exit.The shop, which is designed andset up as a building used only for commerce, offersa vast range of food and non-food products on asales area of at least 2,500 m2 on one single floor.Normally situated in suburban areas, it must haveadequate parking facilities.

Impresa a succursali" (branch organization):Firm controlling six or more local operative units(shops) from a legal, functional and organizationalpoint of view. These local units carry out retailing orsupply services to the public.

"Centro commerciale al dettaglio"(retail shoppingcentre):

Complex of at least ten retailing shops having at itsdisposal an adequate level of infrastructure, servicesand parking, possibly situated in historical town andcity centres. Structures designed, promoted, set upand managed accordi,tg to uniform criteria, in which40% of the area is set aside for traditional and spe-cialized shops. The centre should also be integratedto activities related to commerce, (for example; bars,restaurants, banks, post offices, business agencies)and perhaps "extra commercial" activities (for exam-ple theatres, cinemas, conference halls), also with thepurpose of attracting customers.

"Unione volontaria" (voluntary chain):Form of vertical integration regulated by a statuteand made clearer by a common brand name be-tween one or more wholesalers and retailers and/or catering and entertainment establishmentswhich, while maintaining their own legal and patri-monial autonomy, enter into operative agreementswith the aims of organizing purchases and someservices in order to promote sales and improveproduction for the individual member firms .

"Gruppo di acquisto" (purchase group):Association between wholesalers only or betweenretailers and/or catering and entertainment estab-lishments (belonging to one or more specific mar-

14ketable goods sectors), with the aims of jointly real-izing purchases and sales services, but with each

14

associate maintaining his own legal and patrimo-nial autonomy.

2.3 Corporate structureFrom the up-to-date table of the Italian distributionsector in general (Chart 1), we see that retail trade(including street-trading) represents the greaterpart of a total of 1,656,698 firms, namely 982,843firms or 59% of the total.

Italian retail trade therefore appears to be com-posed of a high proportion of small-scale firms,which is confirmed by the legal status of the firms(Chart 2) and by the occupational structure (seechapter 4). There are more individual firms thancorporations or partnerships.

Chart 1 -The Italian distribution system on 1.1.1991

Wholesale and intermediaries in tradeFood wholesalers 36,963

Non-food wholesalers 89,720

Intermediaries in trade 284,243

Hire 8,140

Cash and Carry 297

Retail trade / catering and entertainmentFood retailer in a permanent shop 301,528

Non-food retailer in a permanent shop 572,320

Food street trade 35,674

Non-food street trade 73,321

Hotels, catering and entertainment 254,492

It is possible to distinguish the following inside the

retail trade:

Large-scale retailing

Department stores 942

Supermarkets (food) 3,399

Hypermarkets 70

Associated trade

Food retailer associates 33,061

Non-food retailer associates 6,251

Catering and entertainment associates 2,826

Source: Ministry of Industry, Trade and Handicraft

It is also interesting to note how modern distributionbelongs above all to integrated, associated or co-operative forms of trade.

This phenomenon is the result of a rationalizingprocess in the sector: while large-scale retailingadvances, the small-scale sector is changing fromsmall independent firms becoming firms associ-ated to voluntary chains, purchase groups andcooperations. Therefore, the market shares in thelarge-scale consumption sector are shifting fromindependent trade to associated trade, even atthe disadvantage of the large-scale retailers(hart 3).

Chart 2 Legal form of trade enterprises according to economic activity in 1990 in %

Sector Corporations Partnerships One-man businesses

Wholesale trade 46.9 22.8 5.5Intermediaries in trade 10.9 6.5 17.5Retail trade 27.4 42.0 56.4Catering and entertainment 9.6 17.9 11.1Repair services 2.2 10.8 9.5Total 100.0 100.0 100.0

Source: Prepared by Institute G.Tagliacarne on the basis of CERVED data

Chart 3 - Market shares held by major groups from1981 to 1988 - in %

1981 1988

Voluntary chains 16 26Purchase groups 5 14Co-ops 9 9Large-scale retailers 23 18Independent retailers 47 33

Total 100 100

Source: Prepared by Instituo G. Tagliacarne on thebasis of CERVED data

If we divide the retail trade into sectors according tocategories of marketable goods, we note a reduc-tion in the number of shops in the food sector and anincrease of shops in the non-food sector (Charts 4and 5), a phenomenon linked to the concentrationprocess we have already mentioned regarding thefood sector.

The non-food sector on the one hand has ab-sorbed the conversion of some food shops and- onthe other hand is the manifestation of the qualita-tive development in the sale of consumer goods.The specialization of several non-food shops corre-sponds to the needs of a market serving a new typeof consumer.

Nowadays, the consumer is more informed andharder to please, so when he wants to buy some-thing he also prefers to buy the service offeredtogether with the product. This could be a productconsultancy service or a service regarding paymentmodalities, and this easier to find in specializedshops,

The development of large-scale retailing in Italy hastaken place above all in the food sector (Chart 6),where it represents 24.6% of national retailing fig-ures, while the non-food sector covers only 3.2 %of the entire sector.

Chart 4 Quantity of permanent retailing shops according to marketable goods sectors

total

total retailing

850,000

800,000

750,000

700,000

650,000

600,000

Non-food

t

10.

Food

total marketable goods

550,000

....... ..... ....... ............... ................ ......'.........

1981 1982 1983 1984 1985 1986 1987 1988 1989 1990

500,000

450,000

400,000

350,000

300,000

4t15

15

In the non-food sector, the growth of large-scaleenterprises is relatively low in the food sector, owingabove all to the evolution of consumer demand.Thisdemand is to the advantage of both the quality fac-tor, offered by traditional specialist shops, as well asthe convenience factor offered by mojern alterna-tives such as discount and cash and carry.

This is confirmed by the estimates on the turnover oflarge seliing units, where the growth trend in thenon-food sector is very low even when taking intoconsideration that the non-food sector includes notonly figures for big department stores anddiscounts, but also for the non-food departments ofhypermarkets and supermarkets (Chart 7).

Chart 5 - Retailing shops: absolute and per cent figures according to marketable goods sectors

Permanent retailing

Foodstuffs, beverages and tobacco 301,528 30.68

Fabrics and clothing 171,552 1Z45

Furniture, furnishings, household equipment and materials 133,362 13.57

Motor vehicles, motorcycles and watercrafts distributors of fuel and lubricants 67,851 6.90

Pharmaceutical products, sanitary equipment, paint,

cosmetics, soap and cleansing products 45,924 4.67

4 Office furniture, machines and appliances, bookshops, newspapers and magazines 45,590 4.64

Others and department stores 108,041 10.99

Total non-food 572,320 58.25

Total permanent retailing 873,848 88.91

Street-trade retailing

Food 35,674 3.63

Non-food 73,321 Z46

Total street trade 108,995 11.09

Overall total 982,843 100.00

Source: Ministry of Industry, Trade and Handicraft

Chart 6 - National distribution of permanent retailing; 31.12.1990

Non-food sector Food se( 'or

968 %a 75.4%

3.2%

Cl Large scale retailing MI Other firms

Chart 7 - Estimates of turnover in large sales units

24.6 %

Food Non-food Total

16

Year billion lire billion lire billion lire

1980

1981

1982198319841985

1986

1987

19881989

1990

4,810.46,168.07,823.8

10,175.612,238.814,474.1

16,302.419,105.5

22,719.1

27,684.833,247.3

3,134.03,708.04,246.04,696.35,845.76,496.37,243.98,549,39,563.0

11,958.513,946.2

7,944.49,876.0

12,069.814,871.918,084.520,970.423,546.327,654.832,275.1

39,643,347,193.5

In Italy there could be a reve,..,al of this tendency forfirms belonging to large financial groups. For exam-ple the case of "Stands'; which was purchased bythe Fininvest Group (radio-TV), could become aninnovative model for connections with the world ofmass media.

With regard to large-scale non-food retailing, wecan also mention mail-order firms, which in Italy donot yet play as important a role as in other Europeancountries. This is due to the mentality of the Italianconsumer, who is used to checking the goods beforebuying them, as well as to the inefficiency of postalservices.Growth in the food-sector of large-scale businessesalso depends on a number of socio-cultural factors:

food indeed continues to play a special role in thehabits of the Italian people;the increase in female employment has favouredthe development of supermarkets and hyper-markets which allow women to save time and tobuy from a wider range at lower prices;finally, the establishment of specialized foodshops within large-scale shops (store-within-store)favours large selling units in contrast to the tradi-tional smaller stores.

In general large-scale retailing in Italy represents asector in gradual but constant development thanks to,above all, the utilization of methods leading to con-siderable savings, which together with technologicalinnovations, keep up price competition (Chart 8).

The reasons for the limited growth in large-scaleretailing in comparison with other European coun-tries are the persistence of regulations and the geo-graphic and economic situation of the country.Italy, which has 8,097 municipalities, shows territo-rial characteristics which make the development oflarge-scale distribution forms difficult.

The gradual transformation process towards formsof large-scale distribution is therefore not likely tolead to a complete deterioration of traditional small-scale retailing.

Decentralization of residential areas and the exist-ence of numerous tourist areas will allow the sur-vival and the continued development of :mall com-mercial firms.

The merits of the various forms of distribution havebeen the subject of much discussion in Italy.There is a growing co.:viction that the fragmenta-tion of retail trade can ria longer be considered asign of backwardness: for the past 20 years a grad-ual stabilization has taken place in the relationshipbetween small-scale and large-scale distribution,with a progressive reduction of small food storesand, at the same time, the growth of organizedtrading.In the non-food sector, on the other hand, the trendis in the opposite direction: specialized stores areincreasing while there is a slump in large-scale distri-bution.

On the whole, the "survival" of traditional retailingachieved by adopting increasingly specializedforms -the"explosion"of franchising is an example -shows the stability of the Italian distribution model.It can therefore be said that an "Italian approach"tothe development of the retail distribution ,ystem.characterized by a high level of adaptability andflexibility, has gradually emerged and establisheditself.

This approach leaves room and scope for both largeand small businesses, both from the point of view ofeconomic efficiency and quality of service.At the same time, this particular situation doescreate problems and prospects that need to betaken into account in vocational training.

Chart 8 Development of large-scale retailing (number of firms)

3500

3000 Department storesI01 supermarkets

2500

2000

1500

1000

500

Cs1

O. 0, O.N.O O.

0)O

3500

3000

2500

2000

1500

1000

500

0

17

17

18

Legislation applicable to this field has certainly influ-enced the stability of the distribution model and con-tributed to its development.

There is certainly no doubt that the extreme rigidityand restrictiveness of regulations encouraged thefragmentation of the sector while, at the same time,discouraging competition from large Europeanfirms.

The slow but inevitable alignment of Italian legisla-tion with the European system, also called for byCommunity directives, will bring about a reversal oftrend.The presence of European large-scale distribution,which is already fairly widespread in the north ofItaly, will continue to increase and presumablychange the balance.However, in view of the Single European Market,small and medium-sized trade firms will have tochoose more advanced forms of entrepreneurialmanagement if they wish to be competitive.

In this new context firms will have to be given techni-cal assistance, help and advice instead of financialhelp only (even if trade has never got the sameattention as the industrial and agricultural sectors).Besides intensification of information and profes-sional and managerial training, small and medium-sized firms will be able to change thanks to technicalassistance measures offered to the management.The most important means in order to realize suchcompetitive strategies, which small and medium-sized firms have already started to use, are the fol-lowing:

the transformation to intermediate structuresbetween supermarkets and traditional shops,such as "Superettes";

the insertion of retail outlets in the macrostructureof retail shopping centres;

the consolidation of retail outlets both throughmembership in a purchase group or a voluntarychain and through franchising agreements.

While associated trade is more prevalent in thefood sector, franchising is much more developed inthe non-food sector.The franchising formula is enjoying considerablesuccess in Italy and it is steadily increasing: accord-ing to a recent investigation, at the beginning of1991 there were 253 franchisor companies and12,000 franchisees, with distribution making up77% of this figure.In comparison with January 1989, the total numberof franchisers had increased by more than 20%,and that of the franchisees by just under 19%(Chart 9).

Another example of the advantageous opportuni-ties offered by franchising comes from the fact thatthis formula is now widely used by the large-scaleretailers as well (e.g. Upim and Standa), the objec-tive being low-risk expansion of their own marketshare in new areas.

Chart 9 Number of franchisees according to activitysector Data 1 January 1991

Other specialized commerce 1,500 12.5%

Household articles 600 5%

Personal articles 3,600 30%

Services 2,700 22.5%

Hotels and restaurants 250 2.1%

Industry 200 1.7%

Specialized food commerce 750 6.2%

Non-specialized commerce 2,400 20%

Source: Annuario Multipla

3. The social and institutional context

3.1 Italian legislation regarding theretail , wade sectorItalian le 'station regarding the execution of tradeactivities the result of a progressive deregulationstarting in the 80s which has eliminated many stipu-lations which were a burden for the distributionsystem in Italy.In fact, Law 426 of 11 June 1971, which regulatedgovernment interventions on trade, introduced twofundamental principles:

the vocational qualification of trade operators;the planning r iew accesses to the market, the aimsof which are to assure a correct balance betweensupply and demand, giving administrative author-ities (regions and municipalities) the right to grantauthorizations for the establishment of new shops.

During the first years of their application these rulesbecame a defence of the status quo, primarily dueto the ineffectiveness of the public administrationsystem, and because of these rigid stipulations theprocess of restructuring the distribution system inItaly was hindered or at least delayed.The restrictions regarded mainly:

the granting of new trade authorizations;the enlargement of sales areas (in fact, maximumsizes were established);the expansion of the range of marketable goods;geographic mobility.

To obviate such limitations, a series of legislative andadministrative interventions took place from the 80sonwards with the aim of loosening the regulationsthrough a progressive extension of the exceptionsto the general set of rules.

In fact, these procedures have caused a substantialdismantling of the principle of trade planning, moreand more asserting the value of the market withoutdamaging the general directives of Lcv no. 426, atleast formally.The last of these interventions, which unites themand at the same time expands their scope, is Min-isterial decree no. 375/ 88, better known as the onlytext on trade rules,

The most innovative aspect of the 1988 decree con-sists of the fact that the area limitations fixed by thetrade plan regard exclusively the opening of new

410

shops, no longer their transfer or enlargement.The result of this change is a remarkable liberaliza-tion of shops already in operation.This means that the enlargement of existing shopsand their move to another area can no longer beprohibited. This, of course, promotes the spread ofsmall and medium-sized commercial firms.Moreover, the present set of rules favours the enlarge-ment of marketable goods and consents the unifica-tion and the addition of more marketable goods.The only principle which has not been modified bythe recent changes is the basic qualification of tradeoperators.

As a matter of fact, in order to be able to enter theprofession, potential retailers need to register withREC (Registro degli Fsercenti di Commercio) (Reg-ister of Tradesmen). This registration depends on atleast one of the following vocational qualifications:

a successful examination at the Chamber of Com-merce regarding the products intended to be com-mercialized;attendance at a vocational training course or tohave a university degree or a highschool diploma,on condition that the subjects correspond to thoseof the vocational training course;ownership of a shop for at least two years, oremployment involving sales or administration,also for two years.

Current legislation has also eliminated the previousrigid laws concerning opening hours.Opening hours for sales activities now hinge on thefollowing rules:

facultative opening;closing on Sundays and public or religious holi-days;closing for half a day luring the week.

Regarding the daily opening hours, the law entruststhe Mayor of the city concerned with the task of set-ting the opening hour in the mornings, which cannotbe later than 9.00 a.m. and the closing time in theevening, not later than 8.00 p.m.Individual operators can choose their openinghours within these hours without other limitations.Substantial exceptions regarding daily openinghours and days or half-days of closing are providedfor tourist areas and for particular holidays.The legislative interventions regarding consumerprotection are still insufficient to a large extent,especially in view of the fact that modern marketingpolicies attribute a strategic role to the "quality"factor.To reinforce the trust relationship between the con-sumer and the distributor - who is the consumer'sfirst and immediate reference distributing firmswill more and more have to aim at a system of ser-vice quality which is to be offered to the consumers.This quality service is related both to products of-fered for sale and to the modalities of shopmanage-ment in a broad sense.Italian law-makers are starting to see a need forsuch consumer protection, confirmed by the direc-tives of the European Community.At the Chamber of Deputies two bills (no. 5271 and

no. 5575) are currently being discussed. These billsare intended to introduce a system of quality certifi-cation in Italy, not only for products and the produc-tion process, but also for the service and the struc-tures of the firms.

3.2 The function of the social partnersThe trade unions which represent :etailers are:

FILCAMS -CGILItalian Federation of Workers in Trade, Hotels, TradeRefectories and Services within the General Federa-tion of Italian Trade Unions

FISASCAT-CISLItalian Federation of Trade Unions for CommercialServices Employees and Tourism within the ItalianFederation of Trade Unions

UILTUCS -UILItalian Union of Workers in Tourism, Commerce andServices within the Italian Union of Labour

The" national association which represents employ-ers is Confcommercio General Federation of ItalianTrade, Tourism and Services.

Confcommercio members include 27 provincialassociations and 21 regional associations, as well as140 national category federations.

Another employer association is ConfesercentiItalian Federation of Providers of Commercial Ser-vices.

Moreover, the cooperative trade sector in Italy isrepresented by:

ANCC LEGA National Association of Consumers'Cooperatives within the League of Cooperativesand Mutual Societies;Federconsumo - CCI Federation of Consumers'Cooperatives of Tonfcooperativel

In the Italian distribution sector labour relations withdependent staff are regulated with the help of onesingle national collective labour agreement named"Tertiary agreement: distribution and services".The agreement regulates a system of trade unionsrelations on a number of levels: national, territorialand corporate level.The agreement has been contracted between"Confcommercio" and the FILCAMS (CGIL), FISAS-CAT (CISL), UILTUCS (UIL) trade unions.

On a national level "Confcommercio" and thetrade unions have established annual meetings tocarry out a joint examination of the economic situa-tion and the productivity of the sector, its structuraldynamics, the development prospects, reconstruc-tion processes and technological innovation. Re-cently a work group has been established to discussequal opportunities (studies and research for thepromotion of positive action), a national monitoringagency (for surveys of employment levels, thelabour market, training and vocational qualifica-tion) and bilateral :orporation (a national statuteregulates, on a.13cal level, the promotion and man-agement initiaili4vesj in terms of training and voca-

1

tional quolification, also in collaboration with theregional corporation).In particular the parties have agreed .that:

In view of the imminent implementation of the SingleEuropean Market and also in the light of theprinciples which emerge from the EuroFiet-CECDMemorandum with regard to training needs inthe retail sector, the parties agree that there is aneed to implement a dynamic vocational trainingpolicy with a view to achieving the following objec-tives:

improving the vocational qualifications of work-ers in the distribution and services sectors arid, ingeneral, setting in motion a process of enhance-ment of human resources;

adjusting the offer of labour to corporate needs;

increasing levels of employment and overcomingthe main obstacles to access to employmentaffecting the areas of the south and certain weak-er social groups such as workers over twenty-nineyears of age, non-EEC citizens and women;

satisfying the demand for changes in vocationalqualifications and job descriptions arising fromtechnological innovation processes;

improving the levels of corporate competitive-ness, the levels of service and of quality offered tocustomers and, lastly, optimizing productivity.

The parties agree that the implementation of theabove be referred to the regional and companylevel for the planning of training programmes whichmay include:

training in the area of social communication;training in the general principles of distribution,problems of services businesses and their role inthe economy, company organization;training regarding the world of employment andits rules and regulations, on health and safetylegislation;training on the role and use of new technologies;training in marketing, sales and services, pur-chasing and stock management;training in accounting;study of one additional Community language,from the National Collective Labour Agreement

On a territorial level regional and provincialthe employer associations and the trade unionscarry out an annual joint examination of the samegroup of problems as on the national level.

Regarding corporate level, firms and tradeunions carry out a joint examination of prospects ofcorporate developments. For firms with more than30 employees the negotiations deal with the follow-ing specific subjects:

working hours by turns;distribution of working hours and possible flexibil-

2 0ity; r)decision;

part-time;time contracts;protection of ealth, environment and industrialsecurity;equal opportunity of the sexes;integrative salaries connected to increases in cor-porate productivity;trade union rights: meetings and referenda.

According to Law 190/85 the 1987 contract regu-lates the category of managerial staff, for which aspecific remuneration has been foreseen. More-over, the contract establishes in their favour anintegrated benefit fund, jointly administered bytrade unions and entrepreneurial representatives.

4. Employment and labourAs already mentioned at the beginning of thisreport, national statistics incorporate the retailingsector in Italy into the wider category of trade,hotels and catering and entertainment establish-ments.The last census was carried out in 1991 and the resultsare not yet available; the data quoted here is the result

of estimates carried out by sectoral institutes.

In 1991 total employment in Italy amounted to21,574,000; 8.4% of these persons work in agricul-ture, 32.1% in industry and 59.5% in the tertiarysector (I STAT).The data regarding retailing employment has beenelaborated by CREL for UILTUCS, and indicates atotal of 2,406,800 employed in 1990.

Another source (CESCOM, IRS and EIM) provides atotal employment figure of 2,271,530 for 1990.

However, comparing the two sources regarding theproportions of autonomous workers to dependentworkers, the values are the same: 70% are autono-mous workers and 30% are dependent.

Retail trade represents, 11.2% of total employment.

Comparative historical data (Chart 1) shows thestrong employment increase that took place duringthe last decade and, in particular, the large increasein dependent employment.

The data confirms the evolution of the sector towardsdistribution forms of large dimension and tallies withthe development trend already shown.

On the basis of an analysis carried out by a numberof StudyCentres of "Unioncamere" (Insiituto G.Taglia-came and Mondimpresa) the data on trade employ-ment for 1988 can also be seen.

Chart 2 shows that retailing represents 66% of "lim-ited trade" (wholesale and retailing); within this figure,41.9% of persons employed are in non-food retailingand 24.2% in the food sector.

With regard to the food trade, where modern formsare more present, with a total of about one millionpeople employed, the organized and integratedgroups make up about 200,000, or 20-21 0/u of thetotal (Chart 3).

Chart 1 - Labour units in the retail trade time series, absolute val.,n in thousands

Independent 1980/100 Dependent 1980/100 Total 1980/100

1980 1449.8 100.0 583.5 100.0 2033.3 100.01986 1622.5 111.91 673.3 115.39 2295.8 112.911987 1666.5 114.97 676.9 116.01 2343.7 115.271988 1681.1 115.95 691.2 118.46 2372.3 116.671989 1681.0 115.95 698.2 119.66 2379.2 117.011990 1695.6 116.95 711.2 121.89 2406.8 118.37

Source: Prepared by CREL on the basis of ISTAT data

Chart 2 - Persons employed in the overall trade sector Chart 4 - Distribution of employees in the tertiaryin 1988 sector in terms of insertion levels

Extended trade 4,926,500 100.0Intermediate trade 425,000 8.6Repair handicraft 450,000 9.1

Hotels, catering& entertainment 951,500 19.3

Limited trade', of which: 3,100,000 62.9 100.0recovery wholesale 14,500 0.5

4. food wholesale 290,000 9.4non-food wh,'..sale 745,500 24.0

Total 1,050,000 33.9

food retail 750,000 24.2non-food retail 1,300,000 41.9

Total 2,050,000 66.1

' including street tradeSource: Prepared by Instituto Tagliacarne

Chart 3 Employees in organized and integrated groups

Groups Number

Cooperatives 28,300Voluntary chains 45,500Cash & Carry 11.150Large-scale retailing 60,000Purchase groups 55,000

Total 199,950

Source: Prepared by Instituto Tagliacarne

For the structure of employment in the retail sector,we can refer to the estimates made by "Confcom-mercio" and the trade union organizations and usethem as a basis for discussion regarding contracts(Chart 4). Insertion levels reflect the classification ofthe staff in commercial firms.

In order to understand these estimates, it is appropri-ate to define the various levels according to theNational Collective Labour Contract:

Managerial staff:"The category of managerial staff (...) consists of sub-ordinated employees, excluding top management,who in a continuous way carry out managementfunctions in organizations of adequate dimension

1985' 19892

levels Distribution levels Distribution

IS 1.0% Mid. manag. 1.1

0.5% 3.5%II 1.5% II 6.8 %III 10.0% III 16.6%IV 60.0% IV 48.6V 20% V 18.2%VI 6.0% VI 4.3%VII 1.0% VII 0.9%

100.0% 100.0%

Estimates by Confcommercio - Trade unionorganizations

2 SEAC data prepared on the basis of a sample ofabout 60,000 firms

and decentralized structure. The functions assignedto them are relevant to the development and the ful-filment of the firm's objectives in the context of strat-egies referring to determined programmes of thefirm".

Level 1:"Workers belonging to this level have functions thatare highly qualified and entail some executiveresponsibility, e.g. head clerk in a technical, adminis-trative, commercial (purchasing or sales) or legaloffice, manager in a shop or in a supermarket."

Level 2:"Workers belonging to this level carry out autono-mous operative functions and/or with co-ordinationand controlling functions; they include staff whocarry out their own activity using creativity in the con-text of a specific technical and/or scientific area, e.g.inspector, head cashier, head checker, departmenthead including non-sales departments, bookkeeperor executive secretary with autonomous intellectualfunctions, manager for incoming goods; externalagent for incoming goods; assessor in art andantique shops; removalist."

Level 3:"Workers belonging to this level carry out intellec-tual functions and functions involving specific taclini-cal knowledge and adequate experience, e.g. short-

hand-typist in foreign languages, fashion designer,window-dresser, jewellery assessor, optician (withdiploma), shop-assistant in a bookshop with specialcapacities and responsibilities, skilled specializedoperator, skilled specialized retailer and foodretailer, trailer truck and articulated lorry driver."

Level 4:"Workers belonging to this level carry out labourincluding selling and related operations, and alsowork involving specific technical knowledge, e.g.experie-ced bookkeeper, cashier, shop-assistant indeportment stores, supermarkets and similar shops,warehouse operator, salesperson in a roast meatshop, fish and chip or other similar food shop, ware-houseman, butcher, specialist in a delicatessen, sau-sage, fish, cheese or pastry having selling functions."

Level 5:"Workers belonging to this level carry out qualifiedwork involving normal knowledge and an ade-quate technical and practical capacity, e.g. invoiceclerk, typist, helper in a food shop, helper in a butch-er's shop, assistant salesperson, driver, qualifiedworkman."

Level 6:"Workers belonging to this level carry out workrequiring simple practical knowledge, e.g. door-man, watchman, messenger, common workman"

Level 7:"Workers belonging to this level carry out jobs suchas cleaner, charwoman, cleaning-woman, waiter,etc."In the large-scale retailing sector the division ofworkers probably follows criteria different fromthose defined by the National Contract becausethere is an ulterior contractual instance at corporatelevel. In fact, for the average commercial firm thereis a concentration of employees on the fourth level,while in larger firms there is a trend towards higherlevels.

As recently emphasized in a study by CERES, "theconnection between the contractual classificationand the professional classifications recently intro-duced in order to obtain classifications comparableto those of other countries is not easy.'However, it is possible to make an attempt to re-arrange the classification according to the follow-ing system:

contractual levels VI and VII correspond to the low-est level which requires elementary characteristicsof training and experience;

contractual levels from V to III would correspondto a very wide group of professions which wouldrequire "medium" levels in terms of training andexperience;

contractual levels I and II, in cases where theywere acquired through training processes, wouldcorrespond at least to an upper secondary schooldiploma.

Among the most important changes to be pointedout is the enlargement of the category of "intermedi-ate professions" in trade firms due to the extensionof marketing functions trough specialization in thetrade activities of large-scale firms or of small andmedium-sized associated firms.

It is interesting to note that, among the new profes-sions shown in a 1989 study ' those shown for thetrade sector are all specialization forms on the basisof medium or high education levels (upper second-ary school university degree).

expert in franchising, upper secondary schooldiploma or degree in law, engineering or eco-nomicscommercial logistic officer, degree in engineeringor in mathematics, physics or economicsassistant for territorial and real estate develop-ment, degree in architecture, town-planning, engi-neeringnew openings officer, upper secondary schooldiplomastore planner, degree in engineering or architec-turevisual merchandiser, art diploma or upper sec-ondary school diploma together with vocationalcourse in poster designing, window-dressing, etc.purchasing manager, technical diploma or degreein economicsindirect purchasing officer, degree in economicsmarket analyst, technical diploma or degree ineconomics, statistics, engineeringfashion buyer, technical or art diplomashopping centre manager, degree in economicsmanagement inspector, degree in psychology,political science, economicsbrand manager, technical diplomamarketing manager, degree in economics, sociol-ogy, political science, computer science, psychol-ogymerchandiser, technical diploma with special train-ingpromoter, degree in architecture, technical or art.dif lomaautomated systems officer, degree in engineering,physics, mathematics, computer sciencesecurity officer, medium-high level of training inrisk preventioncashier supervisor, accountancy diploma

These are "intermediate professions" which can beslotted between levels I and II and tend more andmore to belong to the "managerial staff" and

"executive" categories.

L. Frey, B. lacobelli, Lavoro e formazione nel commercio in trasformazione, in "Quaderni di Economia e Lavoro;no. 40, Milan, Franco Angeli ed., 1989.

2 G. P. Prandstraller (ed.), le nuove professioni nel terziario, Ricerca sul prof essionismo degli anni '80, Milan, Franco

Angeli ed., 1989.

`)2r .

With regard to Chart 4 showing the percental distri-bution of employees on each level, it is necessary toemphasise the higher figure for employees of levelIV, where the most represented profession is thesalesperson or shop-assistant.It has been calculated that in 1986 this professioninvolved 400,000 persons (55% of them women), inother words a high proportion of the dependentwork in this sector.

The significance of the role of women is increasingwith the need for a better quality of sales services,because women seem to be particularly endowedwith qualities such as a friendly manner, the abilitytolisten and a good sales manner.Especially in small and medium-sized firms, the rela-tionship between sales personnel and customerscan become strategic for the good development ofcommercial activity.

Until now, the level of education required has notbeen particularly high; the main prerequisite hasbeen a satisfying period of apprenticeship. How-ever, the tendency today combines a good level ofschooling and the abilityto behave well with custom-ers and to learn quickly about the products beingoffered for sale.

A Community investigation (Directorate-Generalfor Economic and Financial Affairs) on the situationof the labour market for European retailing firmsshows an interesting source of comparisons for Italy(Chart 5).

Chart 5 - Employment structure in the retail trade

In this sector, there are more women on part-timecontracts (36%) than men (4%); this allows them toreconcile family and work commitments.The Italian situation shows a delay in the use of part-time contracts (12% less in comparison to the Euro-pean average), whereas Italy passes the Europeanaverage (87% Italy, 75% Europe) when it comes tothe percentage of qualified employees in terms oftotal numbers.It should be pointed out that this "delay"with regardto part-time work is only relative. Italian trade hasdeveloped in a different way from the other Euro-pean countries, with the coexistence of large-scaledistribution, organized distribution and small retail-ers. Part-time work is mainly used in large compa-nies to deal with situations which do not necessarilyapply to small retailers.As far as career paths are concerned, there is still abig difference between women and men: the vastmajority of top managers are men.This is not, however, the case in small business, wherewomen are particularly active and organized innational bodies such as "Terziario Donna", anassociation which stresses the role of the business-woman and presses for the introduction of meas-ures promoting the development and support ofwomen.However, the male/female balance problem con-tinues to affect the whole country, even where politi-cal representation is concerned: the models of amale-centred culture still survive even though thereis a growing awareness of equal dignity and also ofactions aimed at creating equal opportunity.

Men% of employees

Women Total% of employees % of employees

full-time

part-time

quali-fled

non-quali-fied

full-time

part-time

quali-fled

non-quali-fied

full-time

part-time

quali-fied

non-

quali-fied

B 70 30 74 26 45 55 61 39 56 44 72 28D 95 5 91 9 58 42 86 14 70 30 88 12E 81 19 64 36 94 6 60 40 91 9 64 36F 93 7 80 20 51 49 72 28 65 35 75 25I 96 4 88 12 64 36 85 15 76 24 87 13NL 50 50 65 35 40 60 63 37 44 56 64 36P 98 2 56 44 97 4 41 59 98 2 50 50UK 71 2° 70 30 42 58 65 35 51 49 66 34

EUR 84 16 78 22 55 45 72 28 64 36 75 25

Source: Ad hoc inquiry on the EEC labour market.

Chart 6 Special categories or workers

Category Figure % of total workers (59,720)

Part-timeApprenticesSeasonal workersTrainee contracts

7,5124,6021,737

10,464

12.6

7.7

2.9

17.5

SEAC estialate on the basis of a sample of 15,773 small and medium-sized firms

k

23

Another investigation on a sample of 15,773 smalland medium-sized firms provides further elementsof analysis, especially when it comes to the classifi-cation of employees with special agreements, eventhough it cannot claim to represent national reality(Chart 6).Besides part-time workers (12% of total employees,apprentices (7.7 %) and seasonal workers (2.9 %), alarge percentage is composed of employees withtrainee contracts.Trainee contracts were introduced for the first timein Italy, together. with measures on juvenile employ-ment, in 1977 and 1978. The aim of these measureswere to fight unemployment and open a new "chan-nel" to the labour market for young people.At present, these contracts are regulated by Law863 of 19 December 1984, modified by Law 407 of1990, which raised the age limit for acceptance tothe programme to 32; it had previously been29 years.It is a set-time contract which includes, among theemployer's obligations, theoretical and practicaltraining. In compensation for these duties, the lawhas established a series of benefits ranging from taxrelief to the possibility of employing specific persons,or the possibility of advancing the date of perma-nent employment while maintaining the benefits ofthe trainee contract.

Initiatives with the aim of using trainee contracts arecurrently expected in the first part of the nationalcollective contract. In particular, agreements onhow to apply trainee contracts are expected be-tween regime nal and provincial cmployers' associa-tions and the corresponding trade unions.These agreements will facilitate the approval pro-cedures of projects based on the national frame-work agreement.

5. Changing conditions and theirimplications for skill requirements andtraining

5.1 Impact of new technologies in theretail sectorThe greatest changes in the distribution sector, be-sides the more general concentration phenomenon,are attributable to the progressive introduction ofnew technologies for shop organization.

We can demonstrate the development of newtechnologies in the retail sector using a study by"Nielsen-Italia" as a basis.During the last years we have seen trading firmabecoming more and more committed to investingeconomic and organizational resources in the devel-opment of technological applications.The business functions involved in these projects andalso in tests are, for instance, logistics, administra-tion, bookkeeping, organization and marketing.Moreov. r, the commercial function in its central anddecentralized units is exposed to activities of techno-logical development.During the last year, we have seen that tests andoperative EDI activities (Electronic Data Inter-change) have been spreading through interestingforms of collaboration between production and dis-triF firms.

Technological applications regarding payment atthe cashier's desk have had an interesting develop-ment in the area of EFT (Electronic Fund Transfer).Nowadays, hypermarket managers pay a greatdeal of attention to solutions that increase both pro-cedure efficiency and payment forms as well astheir security.The traditional cheques, unreliable without variouscontrols, and the use of Bancomat, which is not yetfully accepted by consumers, have been joined bycredit cards issued and managed directly by tradeorganizations or through the support of banks.The immediate consequence, confirmed by the firstverifications, is the consumer's increased loyalty tothe shop and the increased average value of pur-chases.But the truly innovative consequence is that the dis-tributor, taking advantage of information from thepersonalized credit card, gets a better picture of hiscustomers. Technology has thus once more drawnthe attention of marketing experts as an interestinginvestment for their firms.

Finally we can observe that theses applicationshave given advantages not only to large-scaleoperators and financial groups, but also to smaller-sized or regional groups, showing that efficiencytoday and informative support mechanisms tomor-row regard the entire distribution sector, and, ofcourse, the sector's partners in industry.Among the technological innovations finding in-creased application in retail trade are POS (Point ofSale) systems.These are systems that "read" product codes. Thecodes, printed directly on the products by the manu-facturers, are decoded by an electronic reader.This reader is connected to a terminal able to car, ,out immediately a number of functions relevan'improved corporate management.Openings of new hypermarkets not equipped withthese systems have become rare.With the application of these systems, the tendencyto obtain so-called "hard benefits" has been con-firmed. "Hard benefits" are improvements in inter-nal efficiency and consumer service: speed at thecashier's desk, detailed receipts, immediate andcentralized re-pricing.

In 1989, tests on so-called "soft benefits" werestarted at modern distributing firms. Such "soft ben-efits" regard data exploitation for marketing, pro-motion management and above all the activationof integrated informative systems in the firm.The attention paid by manufacturers to these testsseems to be growing, as it is clear that mechanizedsystems and in general opportunities offered bytechnology can no longer be considered a commonarea shared by production and distribution.In this sense, projects involving the application ofnew technologies developed in collaboration by thetwo competing entities are considered with adegree of interest far superior to their quantitativeweight.Computerized management. of space allocationhas become a matter of great interest for commer-cial operators: manufacturers, distributors andretailers.

The first software for "space management" becameavailable at the beginning of the 80s with personalcomputer technology. Software evolution is linkedto the development of technological innovations(scanners, 386 computers, more sophisticated com-pilers).

With a space management programme, it is, in afew minutes, possible to create, assess financiallyand modify the sales area structures, and to pro-duce planograms. If you multiply excess time spentby the display manager for every single product by8000 or more goods in a medium-sized supermar-ket, you can see immediately how precise and eco-nomical computerized management can be.

Assessing how the business s running can beeffected on the basis of planogram data. The salesfigures projected per linear, square and cubic meterintersect with out of stocks and with gross profits.The returns of inventory investment (indicated by theabbreviation Roii), the direct profitability of theproduct (Dpp), the average value of the inventory,the annual rotation of stocks and lost sales andproducts involved offer a complete picture of thesituation.

A the same time, any factor regarding the categoryof goods can be taken into consideration, such asthe level of service, the fluctuation of demand, prod-uct rotation, ordering and receiving cycles, the split-ting of daily business, the available stocks. Corpo-rate philosophy can be applied to the definition ofthe frequency and models of resupplying, forinstance the days of delivery or number of cartonsor optimization of fhe minimum incorporating thevarious inherent elements to promotional activity.Summing up, we can state that space managementis the measuring process of the efficiency level of

the sales area, and also of corrections which are tobe made to an inventory, to allocation techniquesand to shop structures in order to increase profits.

Finally, we can state that these software packagesallow efficiency improvements where the resourcesare more critical, and, as in the case of space alloca-tion, more scarce.Moreover, computerized management allowsavoiding terminations of stock, which are veryexpensive in both economic and image terms, andfor the distributor as well as for the manufacturer.The target of the programme is established either bydistributors or manufacturers. The distributors wantto maximize sales and profits, increasing rotationand adapting layouts to new structures.Manufacturers develop the programme to be ableto suggest to distribution structures how to allocatetheir products and manage the various formats withthe relative space available for each; in fact, forthem it becomes an instrument of sale, dialogue andcontrol of display activities.

The consequences of the introduction of new tech-nologies at the point of sale, especially on a largescale, are closely linked to the use of qualified staff.But even where technological innovations havebeen introduced on a wide scale, difficult problemshave arisen.Having staff qualified in new information technol-ogies means high training costs. In some cases, thecosts have been higher than the actual investment inthe new technologies themselves.Another result of the introduction of technology inlarge-scale distribution is related to the logisticssector. As the range of brands of products expands,the need arises to keep large quantities in stock and,therefore, sizeable amounts of capital have to betied up.

Chart 1 -The development of space management software

1989 1992

Number of firms using space management software:IndustryDistribution

10 6027 100

Number of sales outletsmanaged with space allocation software:Belonging to distribution firms usingspace management software and thereforepotentially manageable with space allocation software:

20 test 1100

90 2000

Source: Nielsen-Italia

Chart 2 -The spread of scanners

1988 1989

Number of outlets withscanners 1200 2300

Number of outlets withcomplete scanner system 250

1990 1991 1992 1993 1994

3000 3500 4000 4500 5000

400 1200 2200 2500 2800test running

25

26

When an analysis of roles and relationships be-tween technology and training is based on com-pany case studies, it becomes clear that applyingtechnological solutions to the various aspects of cor-porate management makes resources available.

These resources can then be used for the provisionof high-quality personalized services, the needfor which, paradoxically, is actually stimulated bythe presence of so much technology in everyday life.

6. Training and recruitment

6.1 The Italian educational systemA few words of explanation about the national edu-cational system will give a clearer picture of trainingin the commercial sector.

In Italy, education is compulsory for a total of eightyears (primary: 5 years; junior secondary: 3 years)and a reform is under consideration which wouldincrease the compulsory schooling period to tenyears.

Senior secondary schooling lasts for five years, atthe end of which a school-leaving certificate can beobtained.

Vocational schools offer intermediate levels of quali-fication after two or three-year courses; on comple-tion of five years, a technical school-leaving certifi-cate can be obtained.

The next level consists of university-level specializa-tions or post-leaving certificate courses, but theseare not very common and courses of the latter typeare still mainly of an experimental nature. The

Chart 1 The Italian educational system

length of university degree courses various fromfour to six /ea .

Lastly, post-university specialization schoals existonly in a few places and for a limited number ofsubjects.

A reform of the Italian educational system, which isstill under discussion, envisages revising senior sec-ondary education and raising the age limit for com-pulsory schooling. It is proposed to replace the pre,-ent division between senior secondary schools g.ing a mainly humanistic type of education and thosegiving a more technical type (technical institutes andvocational schools) with a basic two-year coursecommon to all and followed by three years of spe-cialization.

The schools which prepare students for the commer-cial sector are the State Business Colleges and Tech-nical-Commercial Colleges and, at university level,the Faculties of Economics and Commerce.

Most employees and executives of business firmshave had this type of education, even though an ini-tial internal training period is always needed beforethey really start working in the company.

6.2 The Italian vocational trainingsystemThe other aspect of institutionalized training, whichis also "external" to the corporate training system, isvocational training. In Italy, it is governed by OutlineLaw no. 845 of 1978.

This law made the regional authorities responsiblefor vocational training and ecch region has there

Degree

University

Post-diploma courses / Specialized schools I

School-leaving certificate

Academic secondary schools Technical institutes Vocational schools

LMiddle-school ertificate

Flunior secondary school

compulsory schooling

Primary school

01111111IMINVII

26

fore adopted its own regulations and organizedspecific regional training programmes.

In organizing training activities, the tweniy-one Ital-ian regions (including the Autonomous Provinces ofTrento and Bolzano) use either training centres theythemselves manage or, under special agreements,other institutions belonging to employee organiza-tions or organizations of self-employed workers,other social and educational associations, firms orpools of firms or the cooperative movement.

An up-to-date picture of the training activitiesorganized by the regions can be obtained from;SFOL, bearing in mind that at least 80% of the pro-grammes listed will probably be implemented.Courses conducted in the "Commercial Distribution"sector during the three-year period 1989-91 didnot exceed 3.7% of all the courses organized in thevarious vocational sectors (Chart 1).

Therefore, the number of students attending suchcourses during the three-year period was not morethan 4% of the total number of students (Chart 2).

With regard to the types of courses organized (Chart3), it can be seen that 72% were special courses, i.e.courses for enrolment in REC or for enrolment in theregister of commercial travellers, followed by coursesfor adults, i.e. refresher courses or courses for the self-employed (16%), while only 3% were for qualifica-tion / specialization and 8.8% for first-level qualifica-tion. Therefore, the participation of commercial sec-tor employees in specific regional vocational trainingcourses appears rather low.

However, it should be borne in mind that many com-mercial sector employees can obtain suitable train-ing in other occupational sectors such as in the hoteland restaurant sector or the advertising and market-ing sector. Particularly in the latter area, there aremany private bodies and schools operating trainingcourses for school or university graduates underagreements with the regions or with Community con-tributions (FSE). In fact, a private vocational trainingsystem operates side by side with the official one. Itconsists in part of bodies which meet some of therequirements of the regulations in force and areentitled to assistance from public funds and, in part,

Chart 1 Courses organized by the regions from 1989 to 1991 in the various vocational sectors

Sector Absolute values Per cent values

1988/89 1989/90 1990/91 1988/89 1989/90 1990/91

AgricultureIndustry and handicraftTertiary sector

3,2736,3999,027

1,923

6,28810,050

3,5786,520

11,038

0.0

32.448.7

10.4

33.954.2

16.9

30.852.2

Total 18,699 18,261 21,136 94.7 98.5 100.0

Not classifiable 1,042 271 2 5.3 1.5 0.0

Total 19,741 18,532 21,138 100.0 100.0 100.0

Among the tertiary activities

Commercial dis bution 615 689 738 3.1 3.7 3.5

Source: ISFOL, Statistical data of vocational training, Rome, November 1991

. Chart 2 - Students foreseen for the courses organized by the regions during the three-year period 1989-1991

Sector Absolute values Per cent values

1988/89 1989/90 1990/91 1988/89 1989/90 1990/91

Agriculture 60,652 32,392 68,575 16.4 9.7 18.0Industry and handicraft 119,820 116,256 116,222 32.4 34.3 30.5Tertiary sector 171,673 185,811 195,746 46.5 54.9 51.4Not classifiable 17,244 4,268 30 4.7 1.2 0

Overall totrl 369,389 338,727 380,573 100.0 100.0 100.0


Coitanercial distribution 12,407 13,608 14,357 3.4 4.0 3.8


';27

Chart 3 -Types of courses organized by the regions during 1990-1991 according to category and sector

Sector First

levelqualif.

Second

level

Adults Special

courses

Others Total

Agriculture 217 201 2,485 651 4 3,578

Industry and handicraft 4,213 496 1,322 485 4 6,520

Tertiary sector 3,399 2,738 3,620 1,241 40 11,038

Not classifiable 1 0 1 0 0 2

Total 7,829 3,435 7,427 2,397 48 21,136


Commercial distribution 65 22 119 532 0 738

8.8% 3% 16.4% 72% 100%


of agencies which enter the market as service com-panies.

The institutes already referred to, sponsored byemployers' or employees' organizations, come underthe first category and help to form links between theworld of training and the world of work. Nearlyalways acting on the basis of the training needs actu-ally felt in the local and business environment, theyad as liaison points for the recruitment / training ofstaff. No national statistics are available regardingsuch bodies and qualitative information wouldrequire many separate case studies.

Last but not least is the role played by the firms them-selves in the field of vocational training. As alreadymentioned elsewhere in this report, the structure ofthe Italian business world, typically made up oflarge numbers of small firms, also influences thecompany-operated vocational training sector.For small firms, in fact, training is mainly a matter forthe owner, who keeps him/ herself up to date byattending short management courses usually organ-ized by some of the bodies referred to above.The time dedicated to training by these owners ofsmall businesses is low and trade associations play avery active role in encouraging training and re-fresher training activities both at the local and thenational level.

On the other hand, for large firms and businessgroups, the vocational training of staff represents asubstantial investment.

FAID ("Federazione Associazioni Imprese Distribuzi-one" Federation of distribution firms' associations)estimates that in 1990 32 thousand million lire wereinvested in training, 32 thousand employees wereinvolved in training programmes and 92% oftrainee contracts were converted into permanentcontracts.

Qualitative information on the activities conductedby the leading firms in the sector show that it ismainly the middle management staff who are in-volved in wide-ranging training programmes irks%

0

attempt to reach the entire staff and improve theorganizational-technological updating processwhich the firms recently underwent.In the same way, groups of firms and cooperativeshave promoted centralized institutes or associationsfor training owners and staff in charge of sales out-lets.

The marked cultural change and the intense Euro-pean competition which are affecting the distribu-tion sector, making it focus increasingly on achievingefficiency also in the quality of sales service, areinfluencing corporate training plans in this sector.Attention to sales personnel is therefore taking theform of direct and indirect action (remote training,multimedia aids) for the improvement cf customerrelations.Informatir.n on this subject will be complemented bythe following case studies.

7. ConclusionsVocational training in Italy is influenced by the factthat, in the vast majority of cases, the sector is com-posed of very small sales units.It would be difficult for these sales units to organizeany continuous vocational training system on theirown and the improvement of basic vocational train-ing is therefore of vital importance, as is the contri-bution made by the authorities to agencies, bodiesand social groups working in the field of training.The role of the small business is still very important inthe "post-industrial" society of today.

The consumer is not a standardized unit but a per-son who is now usually more cultured, more criticaland more demanding and therefore expects a widerange of choices and many options.

A trading model by itself is no longer sufficient dif-ferent approaches capable of satisfying differentrequirements are needed. From the distributionchain to the associated business, from the tradi-tional to the specialized type of shop, from mailorder to door-to-door sales, all these forms of distri-bution combine to fulfill the expectations of today'sconsumer.

What really matters is that there should always bewell-developed professional skills.

The recent National Conference on VocationalTraining stresses the importance attributed to thesesubjects in Italy and the proposals made demon-strate a will to improve training at every level andovercome obstacles to their full diffusion.

The basic requirement, as stressed during the workof the conference, is still to strengthen research inthis area.To train without doing research is a little like actingwithout thinking.

It is only by understanding today's situation that pro-posals for tomorrow can be worked out; it is only byresearch that the needs of a dynamic society can beidentified.

29

PART 2:

ANALYSIS OF ITALIANCASE STUDIES

1. Rinascente Group

2. Conad

3. Coin S.p.A.

4. Pam Group

5. Despar Italia

6. Prenatal S.p.A.

RINASCENTE GROUP

ForewordAt the time this case study was being prepared, theRinascente Group was undergoing reorganization.It was therefore impossible to interview the workers'representatives.


1.1 General informationThe Rinascente Group is one of the largest Italianretailers.Its success is the result of a policy that aims at betterutilization of resources: people, knowledge, salesarea, equipment and technology, product mix andproducts.The combination of these factors makes it possibleto give the most appropriate response to the needsand expectations of the market.The 18,000 employees are the principal strongpoint of the system.The range and interaction of occupational qualifi-cations is one of the widest possible in a commercialorganization and includes a great variety of roles inthe fields of purchasing, sales and technical andcommercial support activities.In order to continuously improve the requiredstandards, training activities have been increased.In 1991, 23,235 man-days were planned for a totalnumber of 29,039 participants, corresponding to1,791 instructor-days.In the last five years the sales area, affiliatesincluded, has increased by 26% to 732,000 m2.This increase has been accompanied by heavyinvestment in equipment and technology. In areasof basic importance to large retailers, such as stockcontrol, the Rinascente Group is in the vanguard.The use of eight trading formulas (La Rinascentedepartment stores, Upim, SMA-Supermarkets,SMA-Citta Mercato, Gross, Croff, Bricocenterand Irony) allows the presentation of a very widerange of products, to satisfy all customer expecta-tions in clothing and personal care, furnishingsand household products as well as in all the foodsectors.The group also includes companies operating in thereal estate and commercial services fields, opera-tions complementing and supporting the group'sprincipal activity.La Rinascente S.p.A. (stock company) provides thegroup companies with a range of ser..ices:

Design of new premises and planning of restruc-turing projects;Purchase and supply of goods;Administration;Finance;Advertising;Data processing;Personnel;Logistics (see table).

In the five-year period between 1986 and 1990, theRinascente Group increased its turnover by 69%,tom 2,510 to 4,595 billion lire.A major part of investments (which between 1986and 1990 went from 106.9 to 244.8 billion lire, arise of 129%) was destined to the food sector.In 1990, the food sector (supermarkets and hyper-

markets) accounted for 66.7% of total capitalexpenditure.

Furthermore, the Rinascente Group has concludedagreements with associations such as A.I.G.M. andAms Marketing Service Ag., the main objectives ofwhich are research in the area of possible commer-cial synergies at an international level in collabora-tion with the major manufacturers and suppliers ona world-wide basis.

1.2 Short history and recent develop-ments in group strategyThe history of the Rinascente Group began in thecentre of Milan more than a century ago.The original initiative came from Ferdinand° Boc-coni, who in 1865 had the idea of opening a smallshop to sell ready-to-wear garments. He was thefirst p 'rson in Italy to do so.It was a great success. In a few years the shop movedto Piazza Duomo and the small shop became the firstItalian department store. Bought by Senator Borlettiin 1917, it was rebuilt after a fire and re-christened"La Rinascente"by Gabriele DAnnunzio,an illustriousexponent of Italian literature.The new name was the beginning of a process ofexpansion marked by many important steps. In1928 the first one-price store was opened in Ver-ona. The growth of Upim continued in spite of the1929 crash and the destruction during the SecondWorld War. In the fifties the number of sales outletsincreased as the country's economy grew: from 47to 77 in the course of the decade.In 1961, when the first signs of the boom began toappear, the SMA supermarket chain was bought. Itwas a revolution: consumers learned how to shopwith a trolley.A decade later they also learned to go shopping withtheir cars, outside the city. The hypermarket conceptdates from 1972, when the first Citta Mercato wasbuilt at Concesio (Brescia). The model was modifieduntil, in 1982 the present-day style of integratedshopping centre appeared at Venaria (Turin).In the meantime, the group's first cash-and-carrywholesale store was opened in 1974 at Bosisio Par-ini (Como) to meet the needs of small shopkeepers.The early eighties were marked bythe developmentof specialist formulas. The first "Bricocenter" (Do -It-Yourself Centre) was opened at Venaria in 1983. In1986 Croff was acquired, the first Italian chain tospecialize in furnishings.Having come into possession of several retailingchains in the food and non-food sectors, the Milancompany felt the need for a more flexible structure.In 1988 it became the Rinascente Group.

From that time onwards, the challenge of large-scaleretailing has been principally in the food sector. Inthe same year, Sigros was bought in Sicily, followedby Sage°, with its 14 supermarkets. At the beginningof 1990 a start was made on integrating the foodsales outlets within the logic of the group. This wasthe origin the SMA-Rinascente Group, composedof 128 supermarkets, 16 hypermarkets, 15 cash-and-carry stores and 61 affiliates.

New investments in avant-garde fields and sectorsproduced Irony in 1991, the first hypermarket for- 31

mula specializing in consumer electronics andhousehold appliances and the fruit of a collabora-tion agreement with Sogema (Expert).

Growing together with Europe, playing the qualitycard: this is the strategy on which the RinascenteGroup has built its medium-term development plan.The challenge of 1992 requires very rapid growthrates in order to reach an adequate critical mass interms of volumes, which can then be transformedinto a competitive advantage over rival firms. Thequality strategy translated into various forms of ser-vice to customers is the essential method for attain-ing this objective.On these premises, the Rinascente Group is mobil-izing its forces in a major effort aimed at consoli-dating its leadership in the trade sector. Particularattention is being paid to the various specialist for-mulas and to franchising, in line with the trends in amarket that increasingly demands that major retail-ers provide the best commercial offers and offerpossibilities for synergies with traditional retailingsystems.

In the department store formula, La Rinascente aimsto extend its presence to all the major cities in Italy,exploiting top prestige locations and playing a deci-sive role in the rehabilitation of city centres that hasbeen going on for some years now.

The group's development plans envisage specialistformulas in the hypermarket system, making it pos-sible to combine wide, complete ranges at very eco-nomical prices. This is the formula that allows thegroup to hold a significant market share. Forfran-chising, the target is growth by 30 to 40 units a year,using the Upim, Croff, Bricocenter and Citto Mer-cato names.However, capital expenditure will be directedmainly to the food sector, for which major growth ispredicted in the near future.The hypermarkets in particular are one of the keypoints about which the Rinascente Group strategyhas been designed.The idea is to develop large commercial centresintegrating different formulas, as already happenstoday in some cities. In these centres, hypermarkets(Citto Mercato) are located alongside specialistshops (like Bricocenter and Irony).The facilities offered will be extended to include agreat variety of services: from banks to dry clean-ers, from hairdressers to newsagents, fast-food out-lets and restaurants.This will make it possible to achieve two aims: on theone hand, to give the shopping centre a greaterpower of attraction, expanding its catchment area(current radius 10-20 km); on the other hand, tooffer the customer the possibility of completing awhole series of spending and personal care opera-tions in the space of a few hours.

Alongside the more traditional sectors, specialemphasis will be put on new initiatives. The divisionconcerned has been assigned an important task: tostudy changes in retailing and promptly detectemerging trends in order to develop tests and pro-

32grammes that keep the group in a leading position,seizing the best opportunities.

32

The directions for development include all thespecialist sectors: mass-market electronics, do-it-yourself, gardening, underwear, beauty andleisure wear. The group is already representedin some of these areas, while in others it is studyingthe most appropriate formulas for market-entry.The overall programmes are ambitious and only acontinuous search for quality will allow them to beimplemented. For the Rinascente Group, quality isan absolute value, a process that involves every-one. It has a component associated with the prod-ucts, which manifests itself in tangible form, andanother associated with customer relations, whichhas intangible aspects but is perhaps still moreimportant.

Pursuing this objective means seeing the 127 millionindividual sales transactions that take place everyyear as personal relationships.This means careful attention to the more than 700sales outlets (direct and indirect) scattered through-out Italy. It requires rigorous selection of the prod-ucts accepted for sale. It means providing 18,000people with a continuous supply of knowledge andinformation, actively and intensively involving themin operations.It means continuing evolution of the companyorgcization so that it responds fully to the expecta-tions of employees and allows them to be attentiveinterpreters of the rules of quality.Continuously checking the quality standards laiddown against the service actually supplied at thesales outlets and the customers' quality require-ments, the group works towards meeting customers'expectations to their full extent.The search for excellence relates to both productand service.For the former, it involves design and creation ofown-label brands, cooperating with the world ofmanufacturing through continuous quality controlperformed in the group's laboratories for both foodand non-food lines, with particular attention givento imported products.Samples are taken of all the goods offered for sale;for the purposes of quality certification new prod-ucts are analyzed as well as ones already on themarket to which attention has been drawn by thegroup's sales outlets or customers.

One example of this process is in the food sector, theso-called "cold-chain", the whole process that makesit possible to maintain a constant temperature for allfrozen products, with the knowledge that a temp-erature rise of only a few degrees is enough to per-mit a dangerous multiplication of the bacterialflora. Another aspect is the hygiene and cleanlinesswith which meat is cut and prepared in supermar-kets and hypermarkets.These are typical hidden tasks, not visible to thegeneral public, but serving to demonstrate why theconcept of quality in the food industry is complexand why it is considered of absolutely fundamentalimportance.

The importance attached to product quality can beseen in the special training operations which will bedescribed later on (see paragraph 2.5.2).

Quality of service, on the other hand, shows itself inthe whole process that brings the goods to the cus-tomer.It includes careful selection of products, complete-ness of the product range, continuous availability ofgoods, timeliness of re-supply, rational design ofsales area; it is evident above all in the professional-ism of the staff.

Advanced technology provides support to logistics,and in this area the Rinascente Group can boast ofsophisticated warehousing and goods recoverytechniques.This is particularly true in the non-food sector. Bynow, all the sales outlets have been connected withthe warehouses by computer: every sale is memo-rized by the optical reader at the cash desk and theinformation is transmitted to the stock control andpurchasing office. It is possible at any moment toknow in real time what articles should be re-sup-plied and where they are needed.

At the operating level, quality control is entrusted tothe individual divisional organizations, each ofwhich has its own systems aimed at the customerand at the sales staff.There is a permanent service quality monitoringsystem in order to assess the degree of customersatisfaction. Every year thousands of customers areinterviewed in the sales outlets.One notable success has been achieved recently:offering customers a free telephone number forreporting dissatisfaction, problems and suggestions.Many thousands of calls are recorded annually andhelp the company to intervene in the critical areasthat emerge from time to time. Finally, there aremeetings with customers to study specific topics andintroduce innovations.

There are four principal tools for action directed atthe sales staff. On the occasion of events of impor-tance from the commercial point of view, mini-con-ventions are organized in which all the employeesof the main production units take part.

Training takes place using multimedia methods:group experts have developed very advanced soft-ware that allows employees to follow self-trainingprogrammes on their own.Specialists in the food retail units are trained in pilotunits. Finally, improvement groups are formed in thesales outlets, which thus become test beds for pro-gressive improvement of the system.

1.3 Structure of the firm"La Rinascente" department storesnumber of sales outlets: 12Upim department storesnumber of sales outlets: 150Citta Mercato hypermarketnumber of hypermarkets: 16SMA supermarketsnumber of sales outlets: 128Gross Cash-and-Carrynumber of wholesale centres: 15Croff Centrocasa specialist chainnumber of sales outlets: 26Bricocenter specialist chain

number of sales outlets: 17Trony specialist chainnumber of sales outlets: 3

(Data for 1992, excluding franchised outlets.)

The eight sales channels can be grouped into threedivisions:

Food division:

Non-food division:

New initiatives:

SMA supermarketsSMA citta mercatoGrossUpimLa Rinascentedepartment storesBricocenterCroffTrony

Of the 702 sales outlets operating at the end of1990 (including the 292 franchises), 157 are in thenorth-east, 130 in the centre and 345 in the southand on the islands.The group's significant presence in the south showsthe commitment of the group to modernization ofservices and infrastructure.The 38% increase in direct outlets (from 297 to 410)is accompanied by a 101'1) increase in affiliations(from 145 to 292).

1.4 Human resourcesThe Rinascente Group employs a total staff of17,592, of which 152 are senior managers, 1,015junior managers and the remaining 16,392grouped in other levels of the Services IndustriesNational Collective Labour Contract.

Most employees (14,993) have a full-time contractalthough, as we shall see when analyzing the salesoutlets, part-time work is mk.ch used, especially inpeak sales periods (Christmas).The majority of employees (67%) are female. Theoverall average age is 38 and the average numberof years of service 13.6.

2. Training policy

2.1 Historical development and currentsituation of training strategyIn its pursuit of expansion, the Rinascente Grouppays particular attention to training policy. Training,in fact, is becoming the instrument through whichthe company implements its development strategy.At every level, the personnel are involved in a train-ing process that aims at creating the uniformity ofbehaviour towards the customer that is the truestrong point of the Rinascente Group's image.

The number and country -wide spread of thegroup's sales outlets necessitates centralized designand definition of quality standards, so as to achievea uniformity of approach and repeatability ofactions.The aim is simple: customers should not haveresponses from individual sales outlets, but alwaysand in every case from Rinascente.Each opening of a new sales outlet is therefore pre-ceded by a specific training course.

3333

Newly employed personnel are trained beforestarting work in the new sales outlet, so that they willbe able to convey the Rinascente message rightfrom the first day.

Before a branch is opened, the personnel are in-volved in a basic training course that includes bothmodules dedicated to the more technical and spe-cialist aspects of the products sold and others morerelated to service and sales behaviour (two to threemonths before opening for large-scale outlets andtwo to three weeks before for smaller outlets).The training modules differ in both content andduration according to the type of outlet to beopened. On an average they provide 4 to 6 days ofclassroom instruction; the aim is to reflect the vari-ation in the type of goods sold as well as in the num-ber of personnel involved.

It is important to emphasize that this initial pro-gramme is not an isolated end in itself; rather, thetraining is resumed and repeated over time, thusconsolidating its value as an investment.Communication between centre and branches, andhence the aim of uniformity of approach, is

achieved through the "building" of manuals withinthe firm.This is a recent development that is already bearingfruit, particularly from the point of view of involvingthose responsible for each sector, who are thuscalled upon to reflect on their own work.The manuals produced, intended for both man-agers and staff, have become an important instru-ment for consultation, study and reflection.

2.2 Historical development and currentsituation of training structureRecent developments within the firm have alsomodified the internal organization of the trainingdepartment, which is currently closely linked to thequality development department, having the samedepartment head.

In the Milanofiori head office, the training qualitydevelopment group is composed of seven instruc-tors, two quality experts, a financial expert and twosecretarial staff, as well as the department head.The projects described above are initiated by thisgroup but, as has been seen, every project directlyor indirectly involves many other people in the firm.Attention is drawn to the participation of line super-visors and working groups in the planning andimplementation of new training activities with aview to making them better suited to the needs oftheir internal customers.

In total, the Rinascente Group spends more thanfour billion lire a year on continuous improvementof its employees' qualification levels and ability torespond to the customer.

2.3 Participation of trade unionorganizations in training policies

Observations of trente unionrepresentatives on a national levelThe Rinascente Group seen by Salvatore Falcone,official of the FISASCAT-CISL trade union office:

(,1 t

Relations with the Rinascente Group, respectingreciprocal autonomy and notwithstanding the con-flicts typical of the parties involved, are always con-ducted in a polite and constructive atmosphere.Integrative contracts and the recent participation inthe management of the development-orientedrestructuring of the organization have producedgood results.

The Rinascente Group seen by Antonio Zilli, assistantsecretary general of LELTUCS-Ull:

Understandings reached with La Rinascente in thearea of vocational training refer to the CompanyContract of 1989, which provided for the following:the right of the trade union to be informed regard-ing training programmes; the establishment of afinancial dimension to the resources dedicated totraining; indication of the training content referringto the Eurofiet-CECD memorandum; the constitu-tion of a Technical Commission on training. To date,very little of the above ha; been seen.

Recently, on the occasion of negotiations on theeffects of the restructuring process of the Upimchain and of group development, a commitmentwas established to support the plan mentionedabove with significant professional training activi-ties for personnel transferred to other commercialtypologies as well as for vocational re-qualificationin terms of updating in relation to the re-launch ofthe Upim chain.

A significant characteristic of the agreement is alsoto be found in the bilateral planning, implementa-tion and management of the training activities,which are to be prepared by a joint commission ofexperts.

However, the subjective and objective difficultiesbetween the company and the trade unions andbetween these organizations themselves are slow-ing down the innovative character of the agree-ment and the experiment with the risk that yet againthere will be no concrete results.

The Technical Commission has, however, startedexamining the training content and method's in-volved in the ARIANNA project, viewing the audio-visual programmes and the material which the com-pany has presented as unchangeable although it iswilling to complement it with othertraining activitiesof a traditional nature.Detailed information on other initial and refreshertraining activities has never been supplied to thetrade union organizations.

La Rinascente Group seen by Nano Corraini, mem-ber of the National Secretariat of FILCAMS-CGIL:

Recent participation in the reorganization andrestructuring plan within the scope of the overalldevelopment of the Rinascente Group has led to theimplementation of significant agreements in thearea of training and refresher training. Agreementby both parties on the need for and usefulness of anactive vocational policy, in the interests of both thefirm and the workers, was an important step for-

ward.This agreement should certainly be regarded aspositive.Relations with the Rinascente Group are, notwith-standing normal conflict situations, constructiveespecially at the national level but the transfer oflines of action decided upon at the national level tothe individual company locations is not automatic;good relations, conflicts and some clashes alter-nate.

It is hoped that the agreement on training, which is apositive and indispensable element of Rinascente'soverall development plan, will really be put intoeffect.


2.4.1 The "ARIAN NA" multimedia inter-active training projectThis is the major project for the firm in the field ofcontinuous training; it is currently in the implementa-tion phase.The project's aim is to make the group's messageuniform, spreading the idea of "customer orienta-tion" down to the last unit throughout the group. Inthis sense, one can say that the project is half a train-ing project and half a quality prOject.

The necessity of reaching every sales outletthroughout the country has required the adoptionof non-traditional technologies, especially in viewof the very limited use of multimedia training tools inItaly.For this reason, there was a planning stage thatlasted almost two years and covered both timingand organizational aspects.It proved necessary to form work groups within thecompany, made up of training personnel, lineexperts and operative staff.The firm thus involved considerable humanresources, transforming the planning stage into amajor creative effort.When the type of hardware required had beenselected, the first stations - some fixed, othersmobile -were installed in the sales outlets and test-ing of the programmes commenced.The programmes were aimed at sales staff in thefollowing channels: Upim, La Rinascente depart-ment stores, SMA Citta Mercato and SMA Super-markets.

A special programme of 2-3 modules lasting anhour each was created for each channel.Before employees are introduced to the video ter-minals, managers are sensitize3 at special meetingsheld at head office with the managers or coordina-tors of the sales outlets. At these meetings, the train-ing package is discussed and the critical steps to beemphasized to the staff are pointed out.To maximize the attainment of final objectives, man-agers in their turn organize meetings in smallgroups to encourage employees to share apprecia-tion of the validity of the messages.

At this stage, which is particularly delicate, managersare given additional support from head office.In fact, the Rinascente Group has produced specialtraining instruments (a computer-based trainingCBI- programme plus a manual for those chairingmeetings) on learning techniques and on the man-agement of small groups, so as to help managersto best function as trainers without restricting theirmanagement independence.The. multimedia training project, intended for the1991-1993 three-year period, his obviously cre-ated high expectationsGroup managers have already addressed this prob-lem and are evaluating possible future devel-opments.'

2.4.2 Training of "pupils""Pupils" is the name given to young people em-ployed under a trainee contract and who are seenas future managers of sales outlets.They are subjected to rigorous initial selection fol-lowed by a programme of basic training designedspecifically for their induction into the firm.This training was once done empirically, but it isnow more coordinated, thanks to the possibilitiesoffered by the trainee contract.The firm pays a great deal of attention to this proj-ect, since its aim is to "cultivate" the future sales out-let managers internally, right in the RinascenteGroup culture.

The profile of a Rinascente manager must reflect therequirements of the job, most of all the ability tomanage human resources.The assumption is that, inaddition to being efficient, a good sales outlet man-ager should know how to deal with those resourcesthat make up the strongest point of the organiza-tion: its people.

Given its strategic importance, the programme hasbeen adopted by all of the group's channels andcovers a total of 150-200 trainees per year, thusrepresenting a major training investment on thepart of the firm.Selection of trainees is made by each channel at dif-ferent times of year. Young people under 29 yearsof age with a university degree or a diploma areconsidered eligible and must have specific potentialabilities: leadership talent, ability to relate andorient to objectives.The trainees accepted are then introduced to the firm,channel by channel, by means of a 2-year sandwichtraining programme, in which classroom training alter-nates with training on the job at the outlet itself.The classroom training takes place at the headoffice and comprises 6-7 modular courses, eachlasting three or five days. Apart from commercialtopics, a good part of the time is devoted to man-agement of human resources, in terms of relationswith both customers and staff.

The programme includes a special module regard-ing the product certification process: the aim is tomake participants aware of the importance of this

For an outline of the various project phases, please refer to annex 1. 35

36

aspect and then illustrate the strategies adoptedwith regard to it by the Rinascente Group.

Furthermore, operations manuals are producedand distributed to all sales outlets dealing with per-ishable goods, where the need for quality is mostkeenly felt, not only to give staff information aboutthe intrinsic qualities of the products handled but,especially, about how they are to be processed andthe behaviour called for by health regulations.The same themes are taken up again in a trainingproject for the "Pilot workshops' special "school"departments in certain outlets where staff from allover the network who work in similar departmentsare posted for a period of training.This operation is handled internally by the trainingdepartment with the assistance of some channelexperts. Among the principal aspects dealt with arehygiene and quality control of products.

The trainees are supervised closely by both linemanagement and the training department and theninvolved directly in a quality control project thatperiodically involves all of the group's sales outlets.Every two months, using a check list for the meas-urement of certain specific parameters, the traineesare sent for 10 to 15 days after adequate trainingin the method to be used -to sales outlets I., all partsof the country to measure current quality levels(interior area, exterior area, cleanliness, waitingtimes at the cash desk, etc.) from the customer'spoint of view. The data are processed centrally andtranslated into a report on the sales outlet, the chan-nel and the division; they are an important tool forverifying trends in the firm.

These reports are then delivered to the managingdirector and downstream to reach the managers ofeach sales outlet, who can calibrate improvementsin performance with concrete. data. The activeinvolvement of trainees in the compilation of thecheck list leads up to a final classroom comment onthe results of the report, a fruitful component of thistype of training.

This monitoring programme is exclusive to the Rin-ascente Group and the firm has always made itsfuture managers take part in i ight from the outset.On completion of the training programme, thetrainees go through a "business game", a sort ofglobal check on what they have learned. This busi-ness game last six days and simulates decision-making situations of great difficulty that allow train-ees to measure their aptitude at dealing with thecomplexities of management.

This training tool is not restricted to future managersbut is also used, with suitable adjustments in termsof degree of difficulty, for current sales outlet

3.6

managers. The aim of this activity is not evaluationby the firm. On the contrary, it demonstratesthe high degree of attention paid by the group tosuch an important figure as the sales outlet man-ager.The business game in fact provides a special occa-sion for reflection, for checking one's own capabil-ities and for analyzing possible needs for train-ing, and that is the way it is seen by the peopleinvolved.

2.4.3 The Master for buyersEmphasizing the central role played by buyers in theworld of multiple retailing, the Rinascente Groupprovides a special training course to prepare themto meet the new national and international com-petitive challenges.

The aim of this course is to bring together buyers fromthe various channels (Upim, La Rinascente departmentstores, Cittel Mercato) in a common programme, toencourage a sense of belonging to the group as wellas to stimulate capacities for innovation and creativity.

The Master comprises 4 modules of three days each,with classroom teaching at the head office and alsoplanning work in small groups that may take place out-side the classroom.The buyers, who almost always work on their own, arethus invited to participate in the group culture and atthe end of the Master produce a work project on aspecific problem that has been assigned to them. Thiswork project must then be described to a committee bya spokesperson.

The project relates to their professional skills, but thefact of working in a group stimulates them to look forsolutions directed towards the ultimate objective, withan effort to adjust to what is new and with a specificrequirement for creative solutions.

2.4.4 Quality group animatorsThis project, recently introduced by the firm, is againpositioned half way between training and quality.On the basis of the need to improve customer ser-vice more and more, the firm has decided toencourage measures to improve the quality of cus-tomer service in certain sales outlets of variouschannels through both classroom training and ser-vice/consultancy at the sales outlet itself.

The animators are line personnel trained in themethods and techniques of problem-solving whothen apply them at the sales outlei.The group work is aimed at a specific improvementproject for each outlet and the delicate aspect of the"quality" basis of the course involves the head officetraining and quality development departmentdirectly and profoundly.'

For a detailed description of the programme, please refer to annex 2.

Annex 1

The Arianna Projectdistance training programme

ObjectivesTo develop a "service-oriented" attitude amongthe group's sales staff in conformity with theservice strategies of the various commercialformulasTo give the staff a stronger sense of belonging,stressing the involvement of the group in globalquality and the role of the sales staff

ContentsThe reference market, service, professionalstandards

ParticipantsSales staff of La Rinascente department stores,Upim, SMA-Supermarkets and SMA-Citta Mer-cato .

Method of implementationthree individual sessions lasting 1 hour each, usingmultimedia technologyone small group meeting for each session man-aged by the supervisors

"The Process"The planning phase

Choice of subject Company management

Storyboard presentation Consultancy

Testing of storyboard DivisionsTraining department

Preparation of prototype Consultancy

Testing of prototype DivisionsTraining department

Final product

"The Process"The implementation phase

CBT sent to line Training departmentsupervisors

Presentation of Training departmentproduct/moduleto line supervisors

Presentation of Those in charge ofproduct/module outletto sales outlet Training departmentmanagement

Scheduling Outlet managementimplementation

Presentation of Outlet managementproduct/moduleto staff

Individual viewing of module

Feed-back meeting Outlet management

Report Outlet managementto training dept.

Annex 2

Improvement groupsWho?What?Where?When?How?Why?

Who participates in the activities of theimprovement groups?Group membersCoordinatorLiaison officerBranch management

Group members (4 to 7 persons)Participate in all aspects of its work:Contribute to choosing problems to be dealt with,finding and implementing solutionsShare the work needed to deal with the problemInform their colleagues about the group's work andreceive any suggestions

The coordinatorOrganizes the group's work and is responsible for:

organizing and preparing meetingsteaching problem analysis techniques to partici-pantsguiding the group in dealing with the problemsseeing that rules of procedure are respectedkeeping superiors informed on the group's work(reporting)

The liaison officerSupports the coordinators in all matters related tothe operation of groups (methodological aspects)Facilitates communication between the groups andthe central bodiesHelps the coordinators to present proposals for finalsolutions

The branch managementHas overall responsibility for the improvementgroups through:

Approval of proposals for solutionsControl and standardization of results

What?What problems can the groups deal with?

Operational problems for which participants areresponsible; the solution of which would improvequality of service and the results of which would bemeasurable

What problems can they not deal with?Union matterssalariesmanagerial questionsstaff rules and contractual matters

Where?The improvement group meets in a suitably equip-ped meeting room at the sales outlet

When?The improvement group meets periodically depend-ing on the needs of the sales outlet concerned

37

37

38

How improvement groups workthe coordinators attend a course to learn thetechniques and working methods which theygra, ally transfer to the group membersthe improvement group identifies and analyzesconcrete and operational problems related todaily workit seeks solutions to these problems and proposesthem to the managementit puts the solutions deemed suitable into effectand checks their results

How a problem is dealt withselect, n of the problemdescripik n of the problemdata collection/quantification of the problemanalysis of causesidentification of solutionschoice of solutionsreport to the managementimplementation of solutionsverification of resultsstandardization

What we have achieved

How the value of a solution isdemonstratedBy its cost/benefit ratio

How an improvement group is startedThe management of the branch informs staff that agroup is to be set up

Anyone can participate because one of the charac-teristics of improvement groups is that they areabsolutely voluntary

Why?Objectives:To contribute to the improvement of the quality ofwork in all its operational aspects (methods, equip-ment, environment, safety) and its economic results(times, costs)To contribute to the improvement of services pro-vided to customers/colleaguesTo exploit normally untapped potential resources

Where What

Milan-Duomo branchBella idea group

Era ora group

Cogli attimo group

Via libera group

Monza/Certosa branchesLiberty group (Monza)Kennedy group (Certosa)

Rome-Fiume branchsi puo dare di pit) group

Information and noticesregarding sales floors

Problems related to cash points

Christmas 91 event(how to improve service)

Flows for moving reserve stocks to the floor

Cash service projectProcedures, cash box

Cashier, service

Programme for the induction of new sales staff

Rome-Colonna branchII Marsupio Group Design of a mobile "board" for use in the sales area

3 8

3. "La Rinascente" in Piazza Duomo,Milan

3.1 General description of the salesoutletThe sales outlet analyzed is the "La Rinascente"department store in Piazza Duomo, Milan, the seatof the firm's original store.The outlet occupies a building with nine sales floorsand one services floor, with a total area of 17,217m2.

In 1990, a 7th and 8th floor extension was added,housing two restaurants, a café, a grill, an AmericanBar bearing the name of Gualtiero Marchesi (afamous Italian gastronome), a bank, travel agency,beauty centre, hairdresser and exhibition gallery.In 1991 the basement was restructured andextended to include a delicatessen food area with awine shop, a bakery and confectionery, a tea shop,tasting areas, a party service and a new wedding listservice.In 1992 the outlet is committed to restructuring thecar park and creating new exhibition areas, with themodernization of other sales floors being plannedfor 1993.The store hosts 90 independently managed "shopswithin a shop", mainly in the perfumery sector.The store turnover in 1991 was 183,500 million lire,63.8% of which was achieved in the textile sector.Articles stocked numbered 25,000.It is calculated that six and a half million people visitthe store annually: 3,500,000 Milanese, 1,800,000from other parts of Italy and 1,200,000 foreigners.A total of 130,000 people visit the store every weekincluding 35,000 on Saturday. There are 900,000regular customers (7 purchase per year), 70% ofwhom are women. Their average age is 38, with25% under 24 years of age, 40% from 24 to 44 and35% over 45. Among the customers, 52% havediplomas or university degrees.

Table 1 - La Rinascente in Piazza Duomo, Milan

The Piazza Duomo store is therefore a sales outletdistinguished by a select clientele, the type of ser-vice offered and a notably attractive location fortourists (the 8th floor veranda is on the same level asthe spires of the cathedral).

The organigram (see annex 3) shows a manage-ment staff composed of three areas coordinated bythe same number of assistants (administration,per-sonnel, image) and a line management coordinatedby five group managers, to whom nineteen areamanagers report.

3.2 Human resourcesThe total number of employees in the store is 603, ofwhich:

466 sales persons92 office and services personnel45 logistics workers

In addition, there are 205 outside collaboratorsworking in the "shc )s within the shop".Sixty percent of the personnel, managementexcluded, are classified as level IV in the NationalContract, 10% at level V and the remaining 30% atlevel III.

At the end of 1990, 10% were ov r55 years of age,35% between 40 and 55, and the remaining 55%under 40. The proportion of females in the workforce is very high. In fact, only about 100 of the 630employees are men. Staff turnover is closely relatedto the type of employment contract.

For full-time workers and part-timers with fixedhours (4 hours per day, every day), the turnover is3.5 4% per year. For part-timers working only insome months of the year or on some days of theweek, on the other hand, turnover is very high:

Head cashier Stores Security Ass. Man.

Manager

OCIMirliStrOtIOn

Accounts. sec- Incomingreturtc.;. cus- goodstome. affairs

Maintenance

Clue( windowdresser

AssistantManagerimage

Group man.

PArea man

Ass. Man. Pers. admin.

personnel

3339

40

about 50% in the first year and 75% by the end ofthe second year.

This body of high-turnover personnel (about 150ou; of 630) is selected specifically by the firm forparticular periods. (see Table 1)There are 260 full-time sales staff working in twoshifts (from 9:25 to 18:20 and from 13:20 to 19:35)with an hour and a half break. On Mondays there isonly a single afternoon shift, because the store isclosed in the morning.

Of the part-time staff, 118 work half a day everyday, while 90 work full-time on Saturdays and onemonth of the year; there are 30 who work onlysome months of the year.

With reference to trade union relations, Rinascentepersonnel enjoy a company supplementary con-trcct which adds 10-12% to the pay levels of theNational Collective Contract. There are also prod-uctivity bonuses at both store and division levels.On terms of staff selection, the Piazza Duomo storereceives about 30 applications per day. Almost allof these are young women with school-leaving cer-tificates.They are given a personality test (designedby the head office), followed by an interview. Thequalities the firm chiefly seeks in recruiting person-nel are relational capabilities and flexibility in work.Generally, possession of specific academic qualifi-cations for retailing (issued, for example, by statetraining institutes) is not a decisive factor in recruit-ment.

There was a marked change in the management'sapproach to internal promotion in 1986 andrecently an evaluation of potential for career rout-ing has been introduced.The majority of employeesare, however, by now fixed at levels IV and V, and30% constitute a stabl? population.

3.3 Description of major programmesOne of the most significant measures has been theintroduction of the Multimedia Training Programme.For the management of "La Rinascente' depart-ment stores, this project envisages four modules, thefirst of which is already in operation.This module starts by describing the firm's history (forall the channels) and then that of the departmentstores, the "positioning" of the division and, aboveall,the type of service offered to customers.The message aims at emphasizing the complexity ofthe commercial process in which the departmentstores are involved and the importance of a custom-er-oriented service, one that therefore takes accountof the firm's established image and the relationshipof trust established with the public over time.Full introduction of the programme was precededby a test that involved all the management and arestricted sample of sales people.Implementation of the module has required abilityto manipulate the hardware, with which the person-nel already had some familiarity.

In fact, there are about four years' experience usinginformational videotapes on important events. Fouror five times a year, all employees are required toview group documentaries aimed at their involve

ment in new types of goods being offered and/ortechnical topics.

Unlike this collective viewing, the Multimedia Pro-gramme provides for individual and interactive useof the equipment and in this sense is classified as atraining exercise, or better, as a self training exer-cise.The multimedia tool is used in the department storesfor another project of great importance: a basicEnglish course for sales outlet personnel.The programme is sectoral, and therefore differsaccording to the people to whom it is addressed.Attendance is voluntary.

Employees do about an hour of work with themachines twice a week, following a planned sched-ule. Every eight lessons, and therefore about once amonth, is a test to check what has been learned.This instrument has proved very effective andattracted numerous and attentive participation.The training programme for high-turnover person-nel consists of a period of attachment described as"on-the-job training".These employees, who are classified as belongingto level V of the National Labour Contract, are"attached" to level II personnel, specifically to salesassistants, for one week. The aim is learning thecompany language, especially in terms of the goodsdealt with in a particular department.

During the same period, the new employees areinvolved in compiling paper documentation andtheir knowledge of how to use the cash register ischecked. They also take part in a refresher mini-meeting that the floor managers periodically holdfor floor personnel.

Strictly qualitative in nature, the project, which waslaunched in the spring of 1991, was terminated inOctober of the same year.

During this period, four quality improvement groupswere set up, a sort of quality circle, with the aim ofimproving the quality of work within the firm and thecustomer service.The four groups involved 40 sales people, 8 areamanagers and a "goods auxiliary" (move of goodswithin the store).Each group worked on an improvement projectrelating to a specific aspect of the sales outlet:

improving visual communication (signs)improving goods movements (area in front of lifts)making the sales outlet more attractive in the pre-Christmas periodimproving cashier service (equipment andon-the-job training)

The experiment generated such enthusiasm fromparticipants and the results were so positive that thefirm is intending to repeat it this year, involving otherstaff.

40

In conclusion it can be said that training activitiesplay an important role in the development plans ofthe Piazza Duomo store.Overall, there have been over 1600 hours of train-

mg: 680 hours were devoted to improvementgroups, 600 to informational videotapes, 210 hoursto English courses and 105 hours to managementtraining (at the head office).And so the store, with the adoption of these pro-grammes and the introduction of the multimediatraining project, finds itself perfectly in line with thestrategy of the Rinascente Group, interpreting itsphilosophy and spirit of development.

4. Evaluations

By the researcherAwareness of the role of the European scenarioforms the background to the search for excellencein both products and service. Excellence is soughtthrough the adoption of very advanced technologyand through constant attention to customers.

The possibility of achieving these objectives is inti-mately linked to special attention to humanresources, whether internal as staff or external ascustomers.Involvement of staff at every level in a training pro-cess aimed at promoting a style qnd a uniformity ofbehaviour towards customers represents the strongpoint of this firm.

The training given seems consistent with the com-pany mission and the training operations, initial andcontinuous, the provision of manuals, the adoptionof sophisticated technology for self-training, theimportance given to small group size, systematiccommunication with the head office, the experienceof animation as willingness to consider improve-ment a process rather than a finishing point, all ofthese factors contribute to making the training poli-cy of the Rinascente Group an important and par-ticularly advanced model of reference.

The following persons were interviewed in the Rin-ascente Group:

Sandro SERENI

Enzo DAMIN

41

Responsible for training andquality developmentMilanofiori Head Office

Assistant personnel manager,"La Rinascente" departmentstore,Piazza Duomo, Milan

41

CONAD

ForewordThis case study, in addition to dealing with the threebasic aspects of the survey, also examined mattersrelated to the Ari cooperative of Rome. This furtheranalysis was needed to better understand Conad'sparticular structure and, in particular, the relation-ship between the sales outlets, represented by thePianeta hypermarket in Rome and the Ari coopera-tive, to which the hypermarket belongs. We trustthat this supplementary information will be recog-nized as a useful complement to the whole survey.


1.1 General informationSince its foundation in 1962, Conad has owed itssuccess to cooperation, not merely as a purchasinggroup, but as an important service organization.

Today Conad is one of the four biggest Italian distri-bution chains and has a system of firms throughoutthe country created specifically to satisfy the verylatest consumer and market requirements. Theorganization includes member retailers, large pur-chasing groups, modern distribution centres, a net-work of specialized and multi-channel outletsthroughout the whole country.

Conad outlets number more than 7,000 and includetraditional and specialized shops, superettes,supermarkets and hypermarkets.

Since 1962, Conad has built up a wealth of experi-ence in the transformation and modernization ofthe national distribution network.Work has concen-trated on the improvement and creation of manysmall and medium-sized businesses and on mod-ernizing them to make them competitive.Today these firms offer customers more comfort-able shopping, a wide range of choices, ample sup-plies of goods and specialized and customizedservices.

The 40,000 persons working in this system of firmswhich has developed considerably in its nearly thirtyyears of operation - pay careful attention tochanges in society, the market, consumption charac-teristics and tastes. Thanks to them, Conad nowreaches 2 million consumers all over Italy every day,offering high-quality products with the typicalConad promptness and courtesy.These are the ingredients which led to Conad's out-standing position in the field of small, medium andlarge -scale food and non-food distribution in Italy.

Conad is a large supply and sales structure. With ashare of 5.1% of food sales in Italy, it is one of thebiggest national distribution centres. As a whole, itsshare of the distribution network is more than 13%of the supermarkets and 7% of the self-serviceshops with areas of up to 400 m2.The Consortium's total turnover for 1991 came to2,338 billion lire, an increase of 11.20% over theprevious year. Taken us a percentage, this was agreater increase than for 1990 over 1989(+9.90%).For the cooperatives, turnover was +12.80% com-pared to 1990, with total sales of 3,413 billion lire.

Retail turnover is estimated at 9,744 billion (+12%).During 1991, thirty-three member cooperawesoperated in the Consortium with a total of 7,099outlets (7,767 in 1990) and a total sales area of946,023 m2.During 1991, the Consortium provided supportfinancing to member groups totalling about 289billion lire.

In considering the figu-es on outlets, the differentcategories belonging to the Consortium's threesales channels should be borne in mind: 'Marghe-rita" for local shops, "Conad" for supermarkets andsuperettes and "Pianeta" for hypermarkets.The number of local shops in the "Margherita" chan-nel increased from 1,018 in 1990 to 1,774 in 1991(+156), with an increase in square metres of areafrom 98,000 to 117,000 (+19,000).The "Conad" channel's outlets increased from 1,163in 1990 to 1,217 in 1991 (+54) with +31,091 m2(509,283 m2 as compared to 478,192 m2 in 1990).The number of outlets in the "Pianeta" channel(hypermarkets) remains unchanged: 2 with a totalarea of 9,600 m2.

The positive trend with regard to overall turnover inThe Consortium continues. In fact, the increase overthe previous year was higher than that for 1990 ascompared to 1989, which was already substantial.Conad owes these good results to the fact that itspolicies responded to the changes in consumer atti-tudes which took place during the last few years:customers are now paying more attention to thequality of the merchandise.

1.2 Short history and recentdevelopments in the Coned strategyConad was founded in May 1962 to meet a needfelt by some purchasing groups to create a coordi-nating and promotional body at the national leveland to concentrate their efforts so as to find bettersolutions to problems and have more impact.

Purchasing groups had already existed in Italy forsome years (the first ones were formed in 1955) toenable retailers to compete with the first supermar-kets.

There were, in fact, two advantages in dealingdirectly with producers: enjoying the special condi-tions that industries and producers were beginningto offer and cutting out the wholesalers who offeredthe individual retailer only a limited range of goodsand little room for bargaining.

However, many of these groups had sprung up spon-taneously, were too small and not well enoughequipped and they soon began to have serious diffi-culties due to their lack of experience in dealing withnew and complex situations and to the absence ofappropriate legislation and special credit facilities.The need was therefore felt to overcome the isola-tion of the different groups by joining forces, andthat is how Conad came into being.This was the beginning of a new cooperative trendaffecting the whole area of small and medium-sizedbusinesses which, starting with the distribution sec-tor, gradually expanded to include producers, arti-

42

43

sans, technicians, professional people - everyoneengaged in independent professional or businessoperations who recognized cooperation as ameans of broadening and improving individualpossibilities.

The importance of cooperation between retailers inthe modernization of the Italian distribution net-work during this period has k en decisive.Conad's great advantage was that it showed itsmembers that modernizing the distribution networkand the methods for circulating goods was the bestway to develop their businesses and be able to dealwith changing consumer demand.

The most significant fact is that Conad membersrepresent 3% of the food traders and 12% of thesupermarkets and superettes existing in Italy.This shows how many traders are open to new ideasand that the time is ripe for developing distributionwith the forces already operating in this sector andthe new forces ready to undertake the manage-ment of modern distribution structures.

The driving force of the innovative process has beenthe large cooperatives, who not only equippedthemselves with efficient distribution centres but,above all, set up the necessary services to provideeffective support to the now sales network.The next few years will be t:.le real test of the move-ment's ability to achieve qualitative growth as well.Conad has a background of important achieve-ments; its members are open to new ideas and itsgroups have sound experience. All this represents aguarantee for the future.Conad's development plans provide for the invest-ment of 240 billion lire in the distribution network.The consortium plans to create more than 1,300outlets in the Margherita channel.In the Pianeta channel, started in 1990, 12 hyper-markets are scheduled to open in the Italian prov-inces during the next three years.An important novelty for 1991 is the conveniencestore : a shop with long opening hours, ideal foremergency shopping, situated near petrol stationservice areas. They will mostly be located near largemetropolitan areas.

Quality and reliability are the strong points of theproducts that bear the Conad brand. To make surethe consumer gets the best, Conad's expert servicesconduct studies and analyses and devote consider-able resources to controlling the many brand-nameproducts (over 350 in the various product lines). Reli-ability, quality and naturalness, especially for foodproducts, are guaranteed by laboratories whichcarry out systematic sampling directly at the outlets.All goods are subject to several different controls,but long before these checks are made, the qualityof the brand-name products is ensured at the pointof origin by all suppliers of raw or processed materi-als who are required to certify - on the basis ofspecial technical analysis forms that the productssupplied to Conad meet the required quality stand.ards.A completely new packaging and a new imagecomplement the intimate quality of every productthat bears the Conad brand.

1.3 Structure of the firmConad is a very complex structure of commercialand marketing activities operating on three levels:

member firms (retailers and shopkeepers);cooperatives (large purchasing and distributioncentres throughout the country);the national consortium.

In the Conad structure, every firm, at every level, isfree to manage its business independently, but theyjoin forces in development programmes andgeneral strategies.The member firms, the cooperatives and the con-sortium belong to the "Associazione NazionaleCooperative Dettagliantr (National Association ofRetail Cooperatives), a body which coordinates thesystem's policies. The ANCD belongs to the NationalLeague of Cooperatives.

In the sector of advertising, publicity, public relationsand specialized publications, Conad works throughthe Societa Comunicazione Europea srI (EuropeanCommunications Society) and the ETA (Edizioni Tec-niche Associate) Scrl.

In the south of Italy and on the islands, where it has4 large distribution centres, it operates through theSocieta Unico Scrl. Commercial cooperation withConad means distribution at a prestige location.During 1990, the operations of the entire Conadsystem produced excellent results in terms of turn-over for the retail trade, the cooperatives and thenational consortium.There are 33 cooperatives.The first 20 of these are the backbone of the organi-zation and account for 90% of the sales. They sup-ply member outlets with a full range of industrialand fresh products and specialist services for reor-ganization, promotion, renovation and manage-ment control.Conad continues to strengthen and improve its ownnational distribution organization: diversified salesstructures, development of hypermarket structures(2, which will increase to 12 during the next threeyears), plans for investment in the commercial net-work, in the distribution centres, in innovation and inhuman resources.Italians have a reputation for being creative andout-going people who like to enjoy life.

The Conad philosophy takes these values intoaccount and knows the maturity, the habits and theexpectations of the Italian consumer who, for dailyand periodical shopping, wants a distribution net-work which can give certain guarantees, whether insmall, medium or large structures: wide choice,good quality products, freshness, easy access, fairprices, courtesy. The Italian shopper also tends toremain true to the corner shop.

On this basis, Conad has reorganized the sales net-work into three channels operating under three dif-ferent trade names:

Margherita, for local shopsConad for superettes and supermarketsPianeta for hypermarkets.

43

The Margherita ChannelDesigned to provide local service, carrying on thebest tradition of the local shop but with a completelynew display layout and marketing approach. Con-sumers welcome this channel, not only because theshops are convenient and close to home, but alsobecause they offer an ideal selection of goods com-bined with efficiency and good service.

A year after its creation, the Margherita channelincludes over one thousand outlets, thus provingthat small is not only beautiful but also profitablewhen it is convenient and specialized. With areasranging from 70 to 200 m2, often family-run withtechnical and commercial assistance from Conad,these shops fit perfectly into the urban scene andmeet daily and emergency shopping needs,offering quick service, natural products and extracustomized services such as home delivery.They are characterized by the prevalence of thefresh food sector (pork, dairy and delicatessenproducts account on an average for 65 - 700/3 ofsales). Gastronomic specialities, bread and pastaare also available.Fruit and vegetables are delivered daily. Theemphasis is on local products and brand names.The best selections include frozen and miscella-neous goods (70% groceries, 30% householdproducts and toiletries).

The Conad ChannelThis is a very modern sales channel which includessuperettes, supermarkets and stores selling miscel-laneous goods.The outlets belonging to this channel have a localcommercial function and offer a full range of goodsfor weekly shopping. They may sell only foodstuffsor also miscellaneous items. The range of servicesand of qualitative "ingredients" is typical of Conad:quality, good value, care, skilled staff and freshproducts. Freshness is most important and Conadhas art excellent reputation for fresh products (55-60% of sales in this channel).

An original layout creates the impression of a typi-cal "piazza"with merchandise attractively displayedwhere the consumer can find the genuine freshnessand sociable atmosphere of the traditional marketsof our old towns.

The Pianeta ChannelPianeta is Conad's newest venture. It is a worldwhere every possible merchandise is available, situ-ated in major shopping areas and equipped withparking, restaurants, bars and special services.The first two Pianeta hypermarkets, in Rome andModena, have been in full swing since November1990. They were planned down to the last detail ofthe specialized sectors by the Conad organizationwith the general consultancy of the Society BossardConsultant Italia.

The world of hypermarkets is the most modern solu-tion for organized large-scale distribution.Conad plans to create a network of 12 medium-sized hypermarkets (from 4,000 to 6,000 m2 of salesarea) throughout the country.This will enable Conad to expand in terms of market

share, improve the quality of its whole organizationand increase the variety available in all productareas.

2. Training policy

2.1 Historical development and currentsituation of training strategySince ;ts early years of existence, Conad has beenconscious of the importance of human resources,but it was only in the early seventies that it set up aspecific department for human resources manage-ment.Those were the years of rapid growth of asso-ciated retailing.

It was felt necessary to give the associated firmsmore directly managerial roles that would give con-crete form to the enterpriw of the purchasinggroup. For this reason attention was focused on thedevelopment of function managers through a typeof training that was real training for the job bymeans of know-how transfer.Naturally the function of management selectionwas not absent on the level of organizational struc-turing of the cooperatives; planning for the posi-tions to be filled was effected according to the roleto be fulfilled. It was therefore natural that trainingthemes should be predominantly administrativeand commercial.

The problems of the shop system were dealt withonly marginally: the training material producedincluded packages to train members in proper man-agement of the sales outlets and actions aimed atthe management of a modern sales unit.The training approach naturally began to alterwith the change in needs and requirements of theassociated enterprises, until it adapted itself to thepresent "enterprise system". And thus, while pre-serving the assets built up previously, from trainingto management of administrative or commercialtype roles, a move was made towards training fornew company functions in the field of informationtechnology, marketing, management control andlogistics.

A system of profiles and models was thus built forfunctions as they became necessary, the contents ofwhich, as well as the modalities of linkage betweenthe different enterprise management systems,weretransmitted through appropriate training initiatives.This is a leap forward in quality, represented by thechange towards new contents and towards theanalysis of management problems and systems ofoperation.Training activity is therefore directed to the needs ofthe individual enterprise, providing support inproblem-solving, thus personalizing action withinthe basic guidelines of the system.

At the same time there is a growing need to transmitand build professionalism in management of thenew sales network. Studies have thus been under-taken within the whole organization and transmit-ted by training through specific modules on man-agement and operational ospects of specialistshops and, more generally, in the overall presenta-tion packages of the Conad sales outlet.

4.1

45

A.

Today Conad produces a complex, rich and variedoffer of training for its associates. Increasingly, cen-tral action follows the logics of greater uniformity inthe system and of targeting the specific needs of theindividual beneficiary. Both the general needs ex-pressed by the sales network in its various channels,and the spectrum of needs of the firms can be tack-led through the preparation of appropriate modelsfor action.The advice supplied to the individual firms must belinked to this in terms of resources planning andestablishment of management systems, both in con-nection with systems logics.

2.2 Historical development and currentsituation of training structureThe year 1987 was an important turning point forConad training policies.Up to then, training had been the responsibility ofthe personnel division, but since the creation ofFordas, planning, organization and operation ofcourses and seminars have been handled exter-nally.

In particular, Fordas deals with training within themore general framework of ANCD (National Asso-ciation of Retail Cooperatives), which representsseveral national consortia, the most important ofwhich is Conad. In fact, although it is a fully autono-mous organization with its own budget, Fordasworks mainly for Conad.

Fordas' relations with the end user, the retailer, typi-fies the social mission of the whole Coned group;this contact always takes place through the coop-eratives which participate in the preparation of stafftraining plans. Because of their representative char-acter, the cooperatives .are, in fact, an excellentsource of information on training needs.

A further channel is represented by the nationalcompanies, all members of "Conad System": theystimulate the second level, the cooperatives, toachieve continuous development.For example, the proposal for a group loyalty cardthe Conad Card - originated from the nationalConarr and Conad Programme companies, reveal-ing a need before it was even clearly expressed byconsumers.

Fordas is completely autonomous from the method-ological point of view. Up to 1989 traditional meth-ods were used: short refresher seminars in order toensure continuous updating. For some subjects, For-das simply offers organizational support. For exam-ple, courses were recently held on fiscal and legalsubjects, with material supplied by the legal office ofFincomma, the group's financial house. For othersubjects (information technology, administration,business, marketing) Fordas acts as a planning unit.The training of managerial staff, however, is alwaysdone in consultation with the personnel managerand his staff. Planning is done by Fordas in all cases.

Recent developments in the training structure, withthe detachment of Fordas and its transformation

46into a third-level company, have to some extentmodified staff deployment. In particular, whereas

Fordas used to have an executive chairman and avice-chairman, these two functions have now beentransferred to the group's holding company, Fin-comma, the lead company of the group to whichFordas belongs. In short, the chairman of Fincommais also vice-chairman of Fordas while the vice-chair-man of Fincomma becomes chairman of Fordas.The operational structure is composed of an admin-istrative officer, 2 organizational analysis and man-agement systems officers, 2 training officers thetraining sector is divided into executive and networktraining - and one secretary.

2.3 Participation of trade unionorganizations in training policies

Observations of trade unionrepresentatives on a national levelConad seen by Antonio Zilli, assistant secretarygeneral of UILTUCS-UIL:

Although it is a part of the cooperative movement,Conad does not have proper trade union relations,at least not with all three of the trade union organi-zations. Despite the fact that UILTUCS is the mosttenacious proponent of the widening of the Collec-tive Contract for Cooperative Retail to include theRetail Consortia, the consortium does not haveregular relations with UILTUCS.

Given the structural and political characteristics ofConad as indeed of a great part of the cooperativemovement, if trade union relations with UILTUCScannot be established on a national level, they canprobably find a counterpart on a local level.However, with regard to professional training poli-cies and activities imposed, conducted and imple-mented by Conad directly and indirectly, they havene r been the subject of information passed andless so of consultation and negotiation with thetrade unions, at least as for as UILTUCS is con-cerned.

Conad seen by Ivano Corraini, member of theNational Secretariat of FILCAMS-CGIL:

This is the first year that Conad has joined the par-ties to the national agreement for consumers' andretailers' cooperatives.In this connection positive union relations have beenachieved on a national level.

2.4 Description of major programmesTraining for the network (Margherita - Conad -Pianeta channels)Many network training courses have been organ-ized at the national level for newly recruited staffand to provide refresher training to shop super-visors.The present trend is to place less emphasis onsuch octivities, even though they have not beencompletely abandoned.

The current strategy focuses on training operators,so as to have a large pool of staff ready to assumeresponsible positions when required.There is not yetany real demand for training of managers. Thesocial element is still very important in cooperativesand it is therefore the members themselves who

r, 4'

form the managerial category of the sales struc-ture. Nevertheless there are some rare cases inwhich the members are either not every active ortotally absent at the outlet and a professional man-ager is therefore needed.

The idea is that where the manager or person incharge is to be a non-member he/she can beselected from among the qualified young operators.The hypermarket channel is a different matter:although the members are the owners, they are notinvolved in the daily management of the outlet.In this case, training mainly aims at preparingdepartment supervisors and staff; no need hasbeen felt so far to train managers. If, however, thedevelopment prospects should indicate this neces-sity, a programme will be started for the training ofmanagers within the system, for example, byrefresher training of existing staff so as not to haveto resort to outside recruitment.

It can thus be seen that the groups tries to find withinits own ranks the new recruits needed to cope withthe changes in the management system, and thisinvolves Fordas as a matter of course.

One of the major innovations in the field of trainingin the last two years has been the introduction ofaudio-visuals, mainly for the Conad and Marghe-rita channels.Most audio-visuals are designed for sales staff andtheir characteristics differ for each channel. A verygeneral and comprehensive audio-visual dealingwith customer relations is one of the most importantones. Even its title "One reason more: courtesy"already clearly defines its aim: a standardized staffbehaviour code designed to give customers maxi-mum satisfaction even from the human angle.The film, which lasts one hour and twenty minutes, isaccompanied by ample documentation and is intro-duced by a training officer, usually a networkoperator from the territory who has been speciallytrained for the task. This operation was planned byFordas with the assistance of an outside industrialpsychology consultant and then developed by aspecialized firm. This was followed by the prepara-tion of other, general audio-visuals more specifi-cally related to Conad or, rather, to "The pleasure ofbeing called Conad".

It can be seen that every effort is being made, usinga clear and acceptable message, to arouse supportfor and participation in the activities of the channel.Along with the technical aspects of communication,such as the correct use of posters and proper atten-tion to display and merchandising, the film alsostresses personal contacts between assistants andclients and all the little ways of achieving successfulcommunication.

Fordas has also created audio-visuals with a morespecific training function in terms of overall depart-ment management - in particular for the pork, milkproducts and the fruit-and-vegetables depart-ments.

For the Margherita outlets, Fordas has produced anaudio-visual specially dedicated to the manage-

ment structure of the channel and, once again, tobehavioural aspects.

The training plan for the retailers who are membersof the cooperatives is completely different. In thisarea, in fact, the need most keenly felt has been topromote overall cultural growth, a developmentwhich is becoming increasingly noticeable in thissector. For example, members want a clear andcorrect relationship with the technical structure, andfor this purpose they have expressed the need tofamiliarize themselves with the drawing up andinterpretation of budgets and with the laws regulat-ing civil or penal liability.

Fordas has responded by preparing an audio-vis-ual on how to manage Boards of Directors. Its suc-cess proves that it was just what was needed.Obviously this product is aimed at the group thatmanages the Boards of Directors of the coopera-tives and its aim is to provide members with as muchinformation as possible so that they have at theirdisposal everything needed for decision-making.

This is certainly the most progressive training projectso far, from the point of view of content and meth-odology.

Many of these audio-visuals can serve for continu-ous training because each one can be seen againby the same audience who, after having acquiredsome experience in the outlet, are able to take inmore of the subject or discuss different parts of thefilm.

To date, the market for these products has been lim-ited to the Conad system but this does not precludethem from being offered outside as well, afterappropriate editing to eliminate specifically Conadaspects and make them suitable for a wider audi-ence.The training market could be expanded by offeringone or two-day training sessions in firms belongingto the sector, using instructors and consultants sup-plied by Fordas.This method is already widely usedin the network, where training is organized coop-erative by cooperative.

At present, training takes place outside workinghours and participation is enthusiastic and numer-ous. The following chart lists training activities car-ried out by Fordas in 1991.

3. The Ari cooperative in Rome

3.1 General description of the firmThe Ari cooperative of Rome, a member of Conad,is a limited company comprising 180 outlets brokendown by channel as follows:

1 Pianeta hypermarket40 Conad supermarkets139 small non-specialized Margherita shops.

The cooperative has 2 warehouses:1 warehouse covering an area of 18,000 ni2 inPomezia, close to Rome, for storing variousgoods;

kt 4C

47

48

Table 1 - Training activities in 1991

Seminars run by Fordas on a national basis

15-16 January Organization and management of workinggroups (for Conad)

10 participants 16 h

16 January Inventory management tools 30 participants 8h

21-22 January8-9 April Course for buyers (for Eco Italia) 17 participants 32 h

24 January21 February14 March Pianeta: feasibility, planning 11 participants 24 h

30-31 January The supermarket's sales potential 7 participants 16 h

19-20 February5-6 March Management of store staff 18 participants 32 h

27-28 February Why Margherito? 13 participants 16 h

20 March Just in time 24 participants 8h

25-26 March Fresh products in Margherita outlets 11 participants 16 h

15-16 April Office work and company image 8 participants 16 h

2 May3,4,5 June

9-10 June Personnel management 15 participants 48 h

27 May4 June The services company (for C. Program) 23 participants 16 h

28-29 May11-12 June Follow-up storekeepers 16 participants 32 h

24-25 June

12-13 September The distribution company (for C. Program) 15 participants 32 h

12-13 September28-29 November The pleasure of being called Conad 4 participants 32 h

30 September1 October Operational methods and management systems 16 participants 16 h

30 September1 October Reading and understanding a balance sheet 7 participants 16 h

2-3 October21,22,23,24 October How to conduct planning interviews 13 participants 48 h

30-31 October Guidelines for 1992 (for C. Program) 18 participants 16 h

27 November4 December Communication and negotiation in firms 12 participants 16 h

(for Conad)

28-29 November Choosing safety 25 participants 16 h

2-3 December Financial planning 13 participants 16 h

4-5 December Merchandising 17 participants 16h


47

c/o cooperatives

15-16 January Taking orders by phone (Conad Toscana Sud) 19 participants 16 h

14-15 March The role of logistics in distribution companies 9 participants 16 h(Conad Toscana Sud)

11-12 June Reading and understanding a balance sheet 16 participants 16 h

23 July21 October The telephone for improving company image 10 participants 16 h

(Conad Lombardia)

Network courses c/o cooperatives

The role of the supervisor for shop and sector supervisors (Conad Nordest)

Service and pleasantness for cashiers (Cam Pistoia)

Master for supermarket managers (Conad Toscana Sud)

Courses for Eco Italia members (CORE)

(LTD)

Refresher training course for assistantsin collaboration with the Province of Lucca (Cam Pistoia)

Training of trainers, Conad Card (Conad Nordest)

Courses for Board Members

8-9 April for Conad Lombardia

5-6 May for Uda

26 September for Conad Not-Jest (repeat)

22-23 October for Conad Toscana Sud

29-30 October for Conad Liguria

7 November for Unico

1 warehouse for specialized foodstuffs, which alsoserves as an administrative office, covering anarea of 5,000 m2, of which 3,000 m2 are cold stores.

Of the latter, 1,000 m2 are for the storage of frozenfish.Ari is in fact the only Conad cooperative to han-dle frozen products, marketed under thename.The cooperative works on two fronts: on the onehand it buys the products which it distributes, and onthe other it provides members with a whole series ofservices, ranging from tax to administrative assis-tance, from accounting to checking and balancingthe books.

Through Conarr, the cooperative also assists mem-bers with the turnkey refurbishing cf sales outlets. Itgives financial advice and handles all the informa-tion technology process in the oul lets, supplying the





18 participants 40 h20 participants 32 h


2 participants 8 h




27 participants 8 h



4 participants 8 h


necessary know-how. Through Fordas, it organizesscheduled training courses for the various profes-sional skills and for the different organizational sec-tors each year.

The Ari cooperative has been in operation for 20years. It started as a voluntary effort by abouttwenty retailer, who organized themselves into acollective purchasing group in the form of a cooper-ative in order to be able to compete with organizedlarge-scale distribution.

The first warehouse covered a total area of 700 m2.As time went cn and the distribution network devel-oped, more members joined and a real companyorganization became necessary

This led to Ari joining the Conad rational consortiumwhich, by buying produce centrally and providing a

z it)

4849

whole series of services, made it possible for mem-bers to offer very competitive prices.The first 700 m2of storage space soon became 4,000 m2 and todayhas reached 23,000 m2. As the years went by,expansion of the physical coverage of the firm wenthand in hand with expansion of the internal techni-cal structure, strengthening of internal administra-tion and the introduction of corporate services. Themodernization of the company structure wasaccompanied by investments in equipment andtechnology.Information technology is used both in the ware-houses and in the various member outlets, which areequipped with scanners at the checkouts. A com-puter link-up between the outlets and headquartersis planned for the near future.Financial participation of members in the coopera-tive follows two main lines:

share capital, which is not fixed but in proportionto each member's turnover: the higher the turn-over the higher the financial contribution.loans to members. The cooperative can profitfrom loans to members, charging them a maxi-mum interest of 10%.

The method of payment for supplies also differsaccording to each member's turnover.Each year the members participate in a preliminarymeeting for their "channel" and agree on theirbudget with the marketing and commercial offices,undertaking to purchase goods to a certain value. Ifthis budget is not respected, the member is penal-ized by being debited with cover charges. On theother hand, if the member exceeds the budgethe /she gets a percentage. The total of all thesebudgets comprise the cooperative's sales estimate.Periodic checks are made to see if the budget isbeing respected because the final balance mustconform to the objectives set.

The cooperative has a Board of Directors elected bythe member's assembly, and a Board of Auditors,also elected by the member's assembly, which isresponsible for balancing the books at the end ofeach year and, after four months, approving theprevious year's balance sheet.

3.2 Human resourcesThe cooperative employs 180 people and is dividedinto the following departments:

Top managementAdministrative and management control depart-mentCommercial departmentMarketing departmentLogistics departmentPersonnel departmentNetwork reorganization department

The cooperative also has 14 "promoters", or net-work assistants, who visit and assist members daily.They also collect orders from the "Margherita" out-lets and transmit them from the cooperative to thePomezia warehouse, which makes deliveries twice aweek.

The "Conad" supermarkets and the "Pianeta"hypermarket send their orders directly to the CEDI(distribution centre) by computer. Goods are deliv-ered by the cooperative every second day to thesupermarkets and twice a day to Pianeta. They aredelivered directly to the shelves. Fresh produce isdelivered every morning, regardless of the channel.Transportation is done under contract and the staffinvolved are therefore not employees of the coop-erative.

Eighty percent of the warehouse staff work fromfour in the morning until midday and two personsremain on duty until 5 p.m. for the preparation andpacking of hard goods.

Ari uses the National Collective Labour Contract(CCNL).There are no part-time contracts; trainee contractsare used, however, and 99% of these have beenconfirmed.Recruitment of staff is mainly on the basis of educa-tional qualifications but candidates are also inter-viewed to rnake sure that they have the necessarypotential for employment with the company.

3.3 Current situation of trainingstrategyTraining is conducted by Ari in collaboration withFordas, which plans special actions according to therequirements of the cooperative.The training plan is therefore designed on the basisof a specific analysis of the needs of the structure;this analysis is made by the management withadvice from Fordas.Training is conducted in two main ways: coursesorganized by Fordas are either held at the Fordasoffices in Bologna or at the cooperative's offices inRome using external teachers.Fordas also carries out special training activitieswith other organizations in which the cooperativesare invited to participate.

The cooperative attaches special importance tovocational training, which, far from being a uselessoperation, is regardec: as a basic element in theoverall development plan of the firm. Getting theactive participation of staff while respecting thepersonality of each individual means motivatingthem and giving them job satisfaction; this, in turn,boosts productivity.

The activities planned by the cooperative are con-ducted during working hours and are aimed both atinternal staff and staff of the member outlets.Although training courses are not obligatory, theyare very well attended.

The participants have shown keen interest in thevarious courses held, which have been so successfulthat expectations increase from year to year. Forexample, the two days of training for Board Mem-bers planned by Ari in collaboration with Fordaswere very well attended. This course, already gen-erally described in the part dealing with the activ-ities planned by Fordas, has produced very positiveresults (see attached programme).

49

The teaching method is mainly classroom trainingusing audio-visuals specially designed for eachsales channel.

The fact that the training courses are planned byFordas in consultation with the Ari cooperative is asignificant factor in ensuring that the specific needsof member firms are taken into consideration. Thefirms therefore play an active role, making propos-als and receiving tangible benefits from the train-ing.

This year the cooperative drew the attention of For-das to the need expressed by members to improvethe logistics sector. Ari therefore plans to extendtraining, which this far had been mainly focused onthe administrative and commercial aspects,to coverthe logistics sector, considered vital for the organi-zational efficiency of the firms.

3.4 Current situation of trainingstructureThere is no special training department in the Ariorganizational structure. Training is the responsibil-ity of Dr. Giovanni Guastella, former personnelmanager and presently network reorganizationmanager, who coordinates the cooperatives train-ing plan with Fordos.Furthermore, Mr. Cimarosa, manager of the "Pia -neta" hypermarket,which is an Ari member, collabo-rates in training work as member of the FordasBoard of Directors.

4. The Pianeta hypermarket in Rome

4.1 General description of the outletThe Pianeta hypermarket in Rome is part of the"Raffaello" Shopping Centre, which exerts a highdegree of attraction because of its situation, sizeand the type of services offered.It is situated in a densely populated suburb of east-ern Rome, easy to reach from surrounding areasand with a considerable territorial influence aswell."Raffaello" is an integrated shopping centre which,in addition to the hypermarket, houses thirty spe-cialized businesses, shops and services and two vastparking areas, one open and the other guarded,covering a total area of 31,000 m2.

The Pianeta hypermarket is a new structure, openedin September 1990, and it is the second largestConad hypermarket. It covers an area of 4,200 m2,2,100 of which are occupied by non-food items.Theannual average number of visitors is calculated at1,980,000 on the basis of about 660,000 cashdockets. The average cash docket is for 61,244 lireand the weekly takings total 780 million lire.There is an assortment of 15,000 artic !es, 80.57% ofwhich are food products and 19.43% non-food.In 1991, the hypermarket achieved a turnover of 40billion lire, 7,851,000,000 of which were producedin non-food and 32,708,000,000 in the food sector.

According to the manager of the hypermarket, abetter balance is needed between the food andnon-food sectors. The aim is to make the non-foodarea more attractive, offering consumers a wider

Table 2 -The role of the Board of Directors in the lifeof the cooperative

The role of the Board in the firmsconcentration/distribution of propertysize of the firmreasons for membership and expectations

Possible levels of Board actiondecision-makingcontrolobtaining information

Group classesThe Board and the choices of the cooperative:the case of the firm's budget

Now Board meetings are conducted:most frequent forms of behaviouruse of discussion timecritical situations

characteristics of the Board as a group

Group classes

Scene from a Board meeting: discussion betweenmembers

Conclusion

assortment and achieving a better distribution ofmanagement costs.Presently the non-food sector is run under a fran-chising contract with the SMA Citta Mercato channelof the Rinascente Group.

In keeping with the trend now common in largestores of creating small specialized sales units, thePianeta hypermarket has three departments (fish,sausages and pastry) which offer assisted sales aswell as self service.

4.2 Human resourcesThe hypermarket is a limited company with a major-ity Ari Conad shareholding (see organization chart).

A total of 141 persons, two of which are Pakistaninationals, work in the outlet, broken down as fol-lows:

2 managers10 clerical workers129 sales assistants

There are 47 employees with part-time contracts,broken down into:

33 trainee contracts14 contracts of indefinite duration

Ninety-two employees have full-time contracts,broken down into:31 trainee contracts54 contracts of indefinite duration1 apprentice6 fixed-term contracts.

There are more women than men on the staff.As faras the educational level of staff is concerned, 60%have school-leaving certificates, 30% technical

:d4 50

51

school certificates and 20% junior school certificates.In view of the variations in levels of education, thefirm attaches particular significance to policies forrefresher training with a view to increasing the com-petence and vocational skills of the individualemployees.

Part-time contracts are used mainly for cashiers,because they allow more flexibility and betterorganization of the work, especially on the busiestdays when all the checkouts have to be open.

In fact business is fairly slack early in the week andreaches its peak on Saturday, when the hyper-market achieves 50% of the week's takings.Staff are recruited through the employmentexchange, where they are requested by name. Staffwith trainee contracts are usually placed at level Vof the National Labour Agreement. Departmentheads are classified as level III.

Salaries conform with the commercial collectivewage agreement and consist of a basic wage, costof living allowance and a third element.

4.3 TrainingThe need to establish a refresher training pro-gramme is keenly felt.This will be one of the future commitments of thehypermarket, since to date training activities havebeen sporadic rather than systematic.Training of hypermarket executives and managerscalls for specific actions and ad hoc programmes,because the culture of cooperatives is much differ-ent from that of companies. Experience has con-firmed the following: executives and managersrecruited from outside the cooperative structurehave different approaches and management meth-ods.

One of the existing training actions, which will con-tinue to be given priority, is the training of cashiers.These employees play a strategic role because to agreat extent the firm's image depends on their rela-tions with customers.

Particular attention is also paid to training meatdepartment staff in view of the perishability of theproduct, the related hygiene and health regulations

Table 3 - Pianeta hypermarket organization chart

and the importance of the way it is displayed on thecounters.

As far as the educational background of sales assis-tants is concerned, few of them come from StateCommercial Schools but most of them have alreadyhad some experience in the sector.Training is the responsibility of the manager of thePianeta Hypermarket, Mr. Michele Cimarosa, whomwe interviewed; he is in charge of planning the vari-ous activities in consultation with the Ari coopera-tive and with Fordas.

5. Evaluations

By the researcherConad training policy reflects the specific needs of acooperative form of organization, which is centredon the decisive role of the members.The system of companies headed by Conad consistsof traditional shops, specialist shops, superettes,supermarkets and hypermarkets.The complexity ofthis system has, overtime, led to a variety of trainingoperations designed to meet differing needs.

From classical methods such as refresher seminarsto training, Conad today also produces audio-visu-als on running Boards of Directors, without forget-ting the constant attention paid to training person-nel in view of giving priority to customer satisfac-tion, through courses held outside working hourswhich enjoy numerous and enthusiastic participa-tion.Undoubtedly positive, therefore, a training offer sodiversified and in any case united by a fundamentalaim of knowing more at every level, in order tooperate better at every level.The model appears suitable for transfer to othercooperative organizations.

The following persons were interviewed:

Fausto DE SIMONE Director,Fordas- Bologna

Michele CI MAROSA Manager,Pianeta Hypermarket,"Raffaello"Shopping Centre,Rome

hypermarket management

procedures & control officer

Plant staff central office admin. data proc. warehouse

food department non-food department i.c. dept

sector officers

52 canned food bread & pastry delicatessen fish fuit & veg. check -cuts textile dept. bazaar

51

COIN S. P.A.


1.1 General informationCOIN S.p.A. operates in three main commercialareas of large-scale distribution: clothing, house-hold, leisure.Its present turnover exceeds 630 billion lire.COIN has three basic approaches to the prepara-tion of the goods to be sold:

purchasing manufactured goods from suppliersaltering goods already manufactured by sup-pliersdesigning, either directly or with the assistance ofoutside designers, products which are then eithermanufactured by SIR EMA, a member company ofthe group, or by external Italian or foreign sup-pliers.

COIN has also been implementing a policy of usingits own brand names for some time now, becausethis is a way of improving the image of its products.Furthermore, as in the case of the shops, the brandname makes it possible to reach particular targetcustomer groups identified by their typical life style.

1.2 Short history and recent develop-ments of the COIN strategyEstablished in 1952, COIN opened most of its salesoutlets during the sixties and seventies.In the mid-seventies, having noted signs of changesin the purchasing habits of consumers and in view ofhigh inflation together with the side-effects of Law426, COIN made a choice: instead of a departmentstore, it decided to become what it is today, mainly ashop, or rather a collection of shops known for theirquality, competence and customer service.

Another important event was the establishing of aholding company in 1981; "COIN Grandi Magaz-zini"was replaced by a different company set-up andwhat used to be different channels became inde-pendent companies; "Oviesse" is an example. Thetwo companies have the same shareholders, theyboth operate in the large-scale distribution area andmarket the same groups of products.There are, how-ever, fundamental differences between them.

Firstly, they serve a completely different type of cus-tomer: medium to upper class in COIN, workingclass in Oviesse. They are also situated in differentkinds of places: historic town centres for COIN andthe suburbs of big cities or small towns in the case ofOviesse.

Their sizes also differ: a COIN sales outlet covers anarea of about 3,000 rn7, whereas an Oviesse one israrely bigger than 1,000 m2.

They also have a different kind of image: COIN,with assisted sales, has more atmosphere than themore spartan Oviesse, which is self -ser eice.

After the opening of the Turin branch in 1982 andthe Montecatini branch in 1986, COIN tried a dif-ferent formula from the one linked to old town loca-tions in Rome in 1988: with its Cinecitta 2 branch,COIN entered the field of shopping centres, fol-

!rte,;. ';

lowed by the Trieste outlet in 1991.We thus have an alternation between the tradi-tional formula and the shopping centre system.In the immediate future, the company plans to con-tinue along these lines, concentrating on franchisingbut seizing any opportunities that may arise in termsof new direct openings.With the approach of 1993,the company is also considering opening abroad.The Group's strategy is to seem more and more likea smaller shop and less and less like c departmentstore, and this means adopting a whole series ofactions for constant improvement of the quality ofservice to customers. In this connection, the com-pany has identified three main variables:

assistance by sales staff, in other words the presenceof courteous, competent and helpful staff;

a product which always keeps pace with new trendsand has a good quality/ price ratio;

an image which, as well as enhancing the goods,helps to attract customers.

1.3 Structure of the firmCOIN operates through 2 distribution channels:

a. branches owned by the companyb. sales points under franchising arrangements.

a. The "traditional" channel comprises 34 salesoutlets, mainly in the big cities of northern and cen-tral Italy, but there are also two in the south: one inNaples and one in Taranto.

Each sales outlet occupies an average area of3,000 m2, has a turnover of about 20 billion andemploys a number of staff varying from 30 to 120persons.

Each branch is regarded as being mode up of"shops" and each shop tries to attract certain typesof customer whom COIN identifies through theirtypical life style.For example, several types of customer are takeninto consideration in the area of women's products:the traditional woman, the modern woman, theteenager and so on.The shops are managed by one or more supervisorswho coordinate a series of sales staff; the number ofsupervisors and assistants depend on the complex-ity and turnover of the shop concerned.There are simple situations with 3-4 shop super-visors and more complex situations with 9-10 shopsupervisors. Each supervisor coordinates between 5and 13-14 persons.

The other staff positions in the branch are:the visual merchandiser, who is the image special-ist, responsible for creating an image in keepingwith company policies and standardsthe administratorthe chief storernan/ womanthe branch manager who coordinates the wholestructure (see table 1)

h. The company has chosen franchising as a meansof overcoming certain limitations to expansion.

J9

53

Table 1 Shop structure

visual

shop

supervisor

shop

supervisor

specialized assistant salesperson

manager

shop

supervisor

administrative officer

shopsupervisor

shop

supervisor

Table 2 Organization (March 1991)

Chairman & Man. Director

Vice chairman

General managerMarketing

services

Central sales & Central Central

promotion dept. franchising dept. product dept.

Central Central image & Central Central

operations dept. new projects dept. administration& control dept.

personnel &org. dev. dept.

The fact is that the laws in force do not facilitate theexpansion of large-scale distribution, and theserestrictions are particularly irksome for a companylike COIN, which, as part of its strategy, tries toestablish branches covering large areas in the his-toric centres of cities. Another advantage of fran-chising is that overheads can be spread over thelargest possible number of sales outlets.The company has tried to make the franchising for-mula very flexible. The idea is to develop the for-mula on a modular basis through 60 shops, cover-ing areas of 250-300 m2, where the most commoncomposition is that of men's and women's wear,although specialized goods, mainly for the home,are also becoming popular.There are two basic franchising formulas: affilia-tion-franchising and agency-franchising. Underaffiliation-franchising the partner is entitled to usethe COIN trade name and sell COIN goods exclu-sively on condition that he/ she follows the companypolicy regarding service to customers. Agency-franchising is, on the other hand, a formula wherethe partner may sell COIN products but does nothave sole rights and cannot use the COIN sign.Normally, the company uses concession arrange-ments as a sort of mutual trial period, but after acertain length of time the partner has to decideeither to continue under an affiliation arrangementor give up (there are an equal number of affiliatesand concessionaires).

In the organization chart of the group, the first livi-sion is that between management and staff (seetable 2).

Management consists of the central sales and pro-motions department, which directly coordinates 34sales outlets, of the central franchising department,which coordinates the structure responsible for liais-ing with existing partners or the acquisition of newones, and a central product department which pre-pares the COIN product range.

The central staff departments try to create the mostfavourable conditions to allow the management tooperate: the central operations department in-cludes the information and logistics systems; thecentral image and new projects department is re-sponsible for technical services, advertising, visualmerchandising; the central administration and con-trol department deals with managerAnt controland with internal administrative services such asgeneral accounting, taxes and legal affairs; lastlythe central personnel and organi ational develop-ment department manages personnel and training.The marketing services, which back up manage-ment's strategic choices with quantitative and quali-tative market research, come under the head office.

1.4 Human resourcesIn 1991 the company employed 2,276 people,76.8% of whom were women and 23.2% men.Most of them, i.e. 1,108 persons, are employed assales assistants at level IV of the National Collective.Labour Contract (CCNL) and make up 50% of thewhole staff; there are 77 executives and 230 level Istaff, 192 level II and 662 level

The most common age group is between 35 and 45(50% of COIN staff); 16.5% are between 45 and50, 14.8% between 28 and 35; the youngestbracket (under 28) accounts for Z6% of the total.The average age is therefore about 40 and lengthof service in the company around 17 years.

Full-time contracts are held by 66.4% of the staff,part-time by 33.6%; most part-timers are in thesales outlets rather than at headquarters.

With regard to education, 58% hold junior second-ary school certificates, 14.3% school-leaving cer-tificates and 2% have university degrees; theremainder have primary school certificates.

The company's integrative labour contract providesimprovements, both financially and with regard toregulations; for example, although the workinghours are 40 a week under the national contract,they are 38 and a half in COIN.

As the company's objectives are to improve qualityand encourage new blood, trainee contracts areoften offered.

Fixed-term contracts, on the other hand, are used inthe sales outlets at particular times of the year; mostof these contracts are for the month of December,which is the busiest month.

The average duration of fixed-term contracts is onemonth and they are always in sales outlets.Staff turnover is around 7-8%.

2. Training policy

2.1 Historical development and currentsituation of training strategyCOI N's training policy is part of a wider strategywhich the company has developed considerably inrecent years: the total quality project.In fact as its history shows COIN made a specificchoice in the mid-seventies, directing all the com-pany resources to the achievement of quality, bothin terms of products and of service.Training has therefore been regarded since then asthe cornerstone which provides permanent supportto the achievement of this particular aim.

2.2 Current situation of the trainingstructureTraining at COIN comes under the central person-nel & organizational development department.This department directly coordinates trade unionmatters, administration and organizational devel-opment.

The selection service and the training and develop-ment service come under the latter which, in turn, isresponsible for the work of the audio-visual prod-uction centre (see table 3). The department planstraining activities and tries to make them respond asmuch as possible to the various needs of the staff.Tothis end,the opinions of the recipients of training areperiodically surveyed.

In planning the various training activities, thedepartment makes every effort to involve the man-agement, so as to make full use of the company'sinternal skills.For inter-fit in courses external firms are always used.

2.3 Participation of trade unionorganizations in training policy

Observations of the trade unionrepresentatives on a national levelCOIN S.p.A. seen by Gianni Baratta, member of thenational secretariat of FISASCAT-CISL:

Union relations with COIN S.p.A. are, on the whole,satisfactory.The restructuring process of the whole organizationin 1989 is, in particular, showing good results. Theorganization has improved, relations are good andapproaches positive. Meetings take place periodi-cally at which the organization gives detailed infor-mation on training plans. Investments are beingmade both in technolcgy and projects.

There is, however, no real participation: the organi-zation gives descriptions but does not involve theunion. Therefore, on the occasion of the next sup-plementary labour contracts, the union intends topress for more involvement in the drawing up oftraining plans.The situation on the whole is good.

COIN S.p.A. seen by Parmenio Stoppa, NationalSecretary, UILTUCS-UIL:

On the basis of the cognitive data supplied byCOIN and information acquired by territorial andcompany trade union structures, it is evident that thecompany, in its professional training policy, is pro-ceeding with directly prepared projects and pro-grammes.

In particular with the quality circles, COIN hasattempted to reduce the gap between manage-ment and operative personnel, in an attempt toforce the emergence of thus for unexpressedcapacities and professionalism, seeking the consen-sus of the trade union organizations.

Table 3 - Current situation of the training structure (March 1991)

Trod° union matters

Central pers. & of g. dev. dept

Organiz. development Personnel admin.

Assistant Selection service Devel. & training service

Audio-visual production centre 55

2.

56

In this sense U I LTUCS has demonstrated interest andopenness toward a more precise regulation of theeffects of this training method to avoid interferencewith the exercising of the role of the trade union in thecompany, and a consequent participation.Not having found unanimous willingness in thenational trade union organizations, the companyhas proceeded with its programme anyway. In ourview, in. a sufficiently correct manner, by seekingconsensus and participation on a territorial level.The requirement for more formal regulation andconsensual definition of the training programmesand routes remains current.

It seems that the company training activities on thewhole have achieved positive results. All this quali-fies trade union relations with COIN as formallycorrect within the scope of the roles of the partiesinvolved.

COIN S.p.A. seen by Renata Bagatin, member of theNational Secretariat of FILCAMS -CGIL:

COIN S.p.A. has a positive attitude toward theunions on the subject of training; even though thereis not yet full participation, the atmosphere createdfavours better and more constructive discussions.


Quality circlesAn eloc.uent example of this is the comprehensivetraining plan referred to as "quality circles", thecreation of which involved the participation of theentire management.This plan was put into effect in 1990 and so far hasinvolved the sales sector and, therefore, the COINbranches, but the head office will also soon beinvolved.The first step was a four-day course to allow the"bosses" in other words branch managers and allthe intermediate supervisors to familiarize them-selves with the various concepts of quality.Intended as a preparatory step towards the crea-tion of quality circles, this action involved every sin-gle COIN outlet and was initially carried out withthe assistance of teachers from the Galgano exter-nal group and later by internal training officersunder the supervision of the central personnel andorganizational development department.

The course consisted of three main modules:

a preliminary module introducing the concept ofquality understood particularly to mean quality ofservice to the customer;

a central module dealing with the main ways ofanalyzing situations and preparing proposals fortheir improvement;

a final module dealing with the conduct and man-agement of the groups.

Participation in this course gives the staff involvedadequate basic knowledge to deal with a projectanalysis.

The 'project groups" are composed of 5 to 7 personsand their task is to analyze a specific subject, assignedto them by the Quality Committee, on the basis of con-crete needs identified in the groups outlets.After four or five months of work each group submits aproposal to the Quality Committee.The committee evaluates the proposals, selects themost suitable ones and arranges for their implemen-tation in the various COIN outlets.Participation in this work, which is compulsory, makes itpossible for the company to identify, from among theproject groups, persons who will later on be capable ofacting as coordinators of so-called "participationgroups". These people then receive further training toallow them to acquire leadership abilities. Later on,these leaders, or organizers, will be responsible fortraining the staff who volunteer to join the participa-tion groups.

The leader is usually a shop supervisor who coordi-nates a group of 8 persons.His/ hertask is to supplythenecessary practical and theoretical means to draw upindependent proposals for improvement which arethen submitted to the Quality Committee.

Each group works for 4-5 months, meeting weekly forone hour or fortnightly for two hours.

As the company regards this activity as an integral partof normal work, it is carried out during working hoursor,where this is not possible for organizational reasonsat the outlet, the time spent on training is either treatedas overtime or compensated with goods vouchers.

COIN treats this whole project as being of vital stra-tegic importance, fully aware that quality is an essen-tial element forcompany growth and must be carefullybuilt up by energetic training action.Through their participation in these operations, thepersons involved can play an active role, make sug-gestions and have a positive influence in the micro-or-ganization. In fact, the proposals made are alwaysaimed at improving service to customers and creatingthe best conditions for this to take place.

The credibility of the projects can be seen from theirtransferability: most proposals are not only put intoeffect in the branch where the participation group hasworked but in all the others as well, local situations per-mitting.

Project groups have been set up in all the outlets.There are no participation groups yet operating in thethree Rome branches and in Naples and Taranto butthere will be by the end of this year.Wherever they have been introduced they have metwith excellent support and great success (See table 4).

Training of sales assistantsThe training designed for sales assistants is dividedinto the training of new recruits and training for staffalready employed.a. When a sales outlet is opened a modular train-ing course lasting 4 weeks is run for newly recruitedstaff.The main subjects dealt with are:

Table 4 - Participation

Plan for the propagation of the 'quality circle-project

Situation on 31 December 1991

Projects prepared 35Improvement proposals submitted 140Proposals approved bythe committee

Of which:Already implementedPlanned for the futureProjects being worked on

104, or 74.3%

60, or 57.7%44, or 42.3%5 group projects

14 participationgroups

sales techniques, matters related to behaviourand customer serviceknowledge of productsmanagement techniquescash operations

In addition to classroom work, all the staff attendingthe course participate in the work of setting up theshop.This operation is entirely managed by the personneldepartment with, from time to time, the assistance ofthe person responsible for a specific matter.

b. Training of staff already employed is done usingaudio-visuals which mainly deal with product char-acteristics and display techniques.The firm has a well-equipped multimedia centrewhich, when the new COIN collections are pre-sented at head office, makes films for showing tothe sales staff. This achieves the double aim ofkeeping assistants informed about the differentproducts, providing them with a wider range ofsales arguments and giving them the main informa-tion needed about the goods on display.Some of these cassettes are produced by the centrespecifically for showing to customers on the occa-sion of special public relations events organized bythe company.Audio-visuals are also used to keep staff informedabout corporate policies or work methods and onmore practical aspects such as dressmaking altera-tions, which constitute an added value to customerservice at every outlet.

In some specialized sectors, such as perfumes, someof the sales assistants are employees of the manu-facturers; these firms frequently organize refresherseminars, not only for their own employees but alsofor the COIN staff who back up sales in thesedepartments.In this way all the staff of the sector concerned hasthe opportunity to attend training sessions. An out-side consultant firm was also recently used in thefurs sector.

A meeting was organized between COIN staff andthe firm which manufactures and supplies fur gar-ments and highly useful advice was given both onthe technical characteristics of the goods and onsales techniques.

Table 5 - Quality circles

1990

111 hours

1991 1992

L. persons

1993 1994

El group

Training for shop supervisorsWithin the framework of the total quality project, atwo-day course is presently being run for shopsupervisors. The course, entitled "Quality in cus-tomer service", uses audio-visual techniques. Situa-tions showing positive and negative behaviourwere filmed in the shops and then shown tc thesupervisors.

Subsequently, the supervisors are called upon toshow and explain the audio-visual to their staff, apresentation which is then followed by a debateand an analysis of the situation.Previously an important course for shop super-visors, based on the Kaser method, had beenorganized by an outside company. The coursedealt with leadership qualities and the ability tomotivate staff as well as with sales techniques andthe management of the working groups salesbehaviour.

Shop supervisors are also invited, at least twice ayear, to attend the presentation of the new collec-tions; this gives them an opportunity to express theiropinions on the specific needs of the local marketand make suggestions on the range stocked.

Training for branch managersBranch managers participate in the quality circlesand in the seminars on service to customers; fromtime to time,theyalso attend external courses organ-ized by specialized companies. These are usuallyseminars dealing with a single theme.

Training available to executives and managers athead office amounts to an average of 3-4 days peryear, or more depending on the sector.For staff working with computers, for example, thetime spent participating in external refreshercourses may be as much as 10 12 days becauset

5657

58

the training needs in this sector are more complexand varied.

Other types of trainingA large part of COIN's training activities aredevoted to the induction of high-potential staff,mainly young university graduates, which mainlyconsists of having them work alongside high-levelcompany staff: in other words, on-the-job training.There are also several training activities geared tocareer development.

Efforts are currently being made to organize thiswork by structuring it into standard courses witha view to encouraging the internal developmentof staff who have "grown up` in the companyculture.

The company pays particular attention to thespread of information technology. For the last fiveyears, courses on the use of personal computershave been organized periodically, dealing with set-ting up and managing the various programs.

A recent new initiative has dealt with English lan-guage courses. A multimedia teaching centre hasbeen set up at head office on an experimentalbasis. The composition of the group used to test thelanguage programme is rather varied. Each onechooses the level most suited to his abilities andknowledge of the language. The course consists of180-200 hours of work for the intermediate levelbut the total duration depends on the students initiallevel of knowledge and learning ability.

The product, which came on the market in Europe in1990 and was immediately bought by COIN, wasdeveloped by Sony in collaboration with Longman,an English publishing firm.There are language courses in operation in thebranches but they are still the traditional kind, withthe support of an outside teacher.

Usually the company provides 60 hours of trainingper person per year and this can be repeated in thesucceeding years.

The existence of these course, particularly in citiesattractive to tourists, shows how much importancethe company attaches to the needs of foreign cus-tomers.

3. The COIN branch in Rome

3.1 General description of the salesoutletThe COIN branch analyzed here is situated inPiazza S. Giovanni in Rome, a densely populatedarea close to the central station and near the histori-cal city centre; it is capable of reaching a vast usersupply which extends over the entire south-easternzone of the city.

Opened in 1975, it has been highly successful sincethe beginning, having enjoyed swift and conspicu-ous confirmation in terms of market presence. Theoutlet occupies a total surface area of 8,000 m2,over 5,000 rn2 of which are reserved for sales.

5 '7

Perfectly in line with the COIN commercial formula,the business sells high-quality clothing and acces-sories for men and women together with householdgoods.

The building has 5 sales floors and a top floor foroffices. It has a welcoming, architecturally pleasinyenvironment, and its main target group is a middleto high-class clientele, which embraces all agegroups but concentrates above all on the groupbetween 25 and 45 years of age.

Opening hours are from 09:00 to 13:00 and from16:00 to 20:00.Saturday is the heaviest business day, while on theother days of the week purchases are concentratedmainly in the late afternoons.

The outlet offers a vast range of services: besidesassisted sales offered in all departments, the con-sumer may take advantage of home deliveries andtailor alterations.

A recent initiative worthy of emphasis is the "COIN-CARD", a credit card where the sum of purchases iswithdrawn directly from a bank current account;this possibility, besides simplifying payment pro-cedures for customers, permits the establishmentof a privileged relationship with the company.

The Rome branch of COIN sees itself definitively asa department store as much in terms of structureand dimensions as in the maintenance of the logic oftraditional shopping.

3.2 Human resourcesStaff at the outlet number 134 in all, 32 of which aremen and 102 women. There are 75 full-timeemployees and 59 with part-time contracts. Theaverage age of sales personnel is around 35 years.The contract applied is the National CollectiveLabour Contract (CCNL), supplemented by a com-pany contract. With regard to distribution, 11 per-sons are at levels I and II; 46 are at level III and theremainder at level IV.

The outlet uses trainee contracts, with the aim ofpermanent employment of the personnel involvedby the company.

In fact, the 40-odd trainee contracts which the com-pany has applied over the last five years have allbeen confirmed at the end of the term agreed.There are currently eight persons employed undersuch contracts.

Turnover is decidedly low, at around 2%.

Three area managers are responsible to the branchmanager, one for administration, one for the ware-house and one for merchandising, and 7 shopsupervisors, each of whom manages a shop andcoordinates a varying number of sales staff.

With regard to the distribution of working catego-ries, sales personnel are in category IV, specializedsales personnel in category III, and at levels I and IIthe area managers and shop supervisors.

In personnel selection, the company tends to pay agreat deal of attention to the degree of education.In fact, vith a few exceptions, there is a trendtowards savouring those possessing an upper mid-dle school diploma, on the basis of the suppositionthat sales activities require particular knowledgeand ability.

3.3 TrainingThe S. Giovanni branch in Rome is affected by all theprogrammes prepared by the central personneland organizational development department ofCOIN S.p.A.

Training activities have the specific objective of pro-viding all sales assistants with all the suitable instru-ments to transfer company philosophy to the cus-tomer, to be, in other words, not just a simple salesperson, but a consultant capable of interpretingand satisfying the exigencies of the clientele.

The supposition is that personnel form the mostimportant link in the company chain and that salesactivities are not only a fundamental function butalso difficult and therefore deserving all possibleattention.

For example, in order to familiarize sales assistantswith the range of goods offered in the shops inwhich they operate, catalogues of the goods on saleare produced and distributed.Other manuals refer to display criteria, providingguidelines on product display methods.

Furthermore, some workers from each outlet areinvited to attend the presentation of new COIN col-lections and other exhibitions which the companyorganizes for particular occasions.

In the scope of the course on "services to customers'the Rome branch of COIN is implementing the sec-ond ph:-..-se of the programme, that is the phasewhich involves sales personnel under the super-vision of the shop supervisors.The latter, in fact, pre-viously trained in a two-day course, are then calledupon to repeat it at their own outlets.

In Rome, therefore, each shop supervisor is follow-ing this programme, which involves the use of anaudio-visual aid followed by a group discussionwith their own sales staff.Further, in the scope of the "quality circles" projectthe shop supervisors are involved in the "projectgroups". There are currently two of these groupsworking on improvements to be effected within theoutlet which will shortly be presented to the QualityCommittee.Within the next year the constitution of "involve-ment groups" is also foreseen.

Among the non-structured initiatives, the constitu-tion of a voluntary group to assume the duty ofsupervising all the services of the branch is worthyof mention.To motivate sharing by all of all the aspects of com-pany management, involvement of all personnel inthe decoration and layout of the departments hasbecome part of the branch culture.

The training activities within the Rome branch ofCOIN are the responsibility of the outlet manager,who maintains contact with the central personneland organizational development department;training is effected during working hours and in-volves obligatory participation.

4. Evaluations

By the researcherThe evaluation of this firm's training activities shouldbe seen in relation to their coherence with the corn-pany's basic strategic objectives, all of which areencompassed in the total quality project.

Total quality is in itself a philosophy, an attitude,rather than the transmission of specific knowledgeand skills, and this is already a factor favouringtransferability of such a training approach to otherfirms.

The firms project centres more on the method thanon the content; it operates in a cascade process run-ning from managers to workers.

Participation in the identification of proposals forimprovement is gratifying for workers, who are con-sidered not as simple performers of specific activitiesbut as persons who can contribute, through theirown sensitivity and skills, to the general developmentof the firm, which is closely linked to the developmentof the individual.

Group culture prevails, together with common andshared values and objectives.

The attention the firm pays to this participation isexpressed in the way these actions are viewed as anintegral part of normal work activities, to the extentthat when they take place outside working hoursthey are recognized as overtime.The role the firm attributes to personnel motivationseems appreciable and transferable.

The following persons were interviewed in theCOIN S.p.A.:

Stefano PISANO Head of personnelSelection serviceCentral personnel &organizational developmentdepartmentHead office COIN S.p.A.Mestre Venice

Marina CANAL Assistant managerDevelopment and trainingsectionCentral personnel &organizational developmentdepartmentHead office COIN S.p.A.Mestre Venice

Antonio SERAFINO COIN branch managerPiazza S.GiovanniRome 59

PAM GROUP

ForewordThis case study, in addition to dealing with the threebasic aspects of the survey, also examined mattersrelated to Silos S.p.A.This further analysis was required in order to betterunderstand the relationships between the sales out-let, e.g. the Silos hypermarket in Parma, and thecompany responsible for its formation.We trust that this supplementary information will berecognized as a useful complement to the wholesurvey.


1.1 General information"Gruppo Pam" is a company limited by shares whichoperates a successful chain of stores in northernand central Italy. It is also active in the sectors ofmodern catering and advanced services.It comprises a number of different firms, each withits own commercial characteristics and organiza-tional independence.The products retailed are chiefly foods, though thepercentage varies according to the particular for-mula adopted and the floor area of the store.

1.2 Short history and recent develop-ments in the Pam strategyIt is impossible to talk about Pam without mentioningits history.What is today one of Italy's largest trading groupsstarted out as a chain of supermarkets set up bythree young businessmen at the end of the fifties:

Pam Supermercati S.p.A.These businessmen realized that the future of com-mercial distribution lay in structures more suited tothe needs of mass consumers and decided to investin the establishment of self-service food stores.Their slogan was "PIO a Meno" (more for less), hencethe "Pam" trade name.

The company's first development phase was expan-sion at the regional level.The earliest supermarketswere opened in the Veneto region: the first in Ver-ona in 1958, the second in Mestre, the third inPadua; later on, the chain extended to the neigh-bouring regions.

In 1963 an important Milanese finance company,'which had an interest in other companies in thesame sector operating in Lombardy and Piedmont,became a shareholder.New opportunities were thus created to consolidatethe company and expand activities to other parts ofnorthern Italy.

This was the second phase of the company's devel-opment; it lasted until the beginning of the seven-ties, when the financial company left and the found-ers bought back its shares.

The achievements during that period can be sum-med up as the expansion of "Supermercati PAM" allover the country on a sound commercial, economic,financial, organizational and management basisand controlled entirely by the founders.

The third phase diversification started in the mid-seventies, after studies and experiments carried outduring the immediately preceding years. This was adaring choice, especially considering the time atwhich it was made. In fact, the economic crisis ofthose years the steep rise in interest rates, the newlegislation on commerce (which obstructed theexpansion of the major distribution groups), a diffi-cult and restless labour relations atmosphere cer-tainly did not seem to be the most favourable situa-tion for taking such a step.

From the start, the diversification policy developedalong three lines: commercial distribution, cateringand advanced tertiary services.

In the distribution sector, a chain of food discountshops, Meta, was started at the beginning of theseventies.Two chains of hypermarkets -Silos (1982)and Panorama (1984) followed later.During the second half of the seventies the com-pany bought shares in two small chains of discountshops in England and gradually took them overcompletely.

In the catering sector, the Brek chain of self-servicerestaurants was started, a decision based onthorough studies and market research; the first res-taurant opened in Trieste in 1975.

Hand in hand with the development and diversifica-tion of business formulas, the distribution centres(CEDI) were expanding.

From a single CEDI in Spinea (Venice), where thegroup's head office is still located, there are now 5CEDIs which supply all the outlets.

The acquisition of an important share packet inEmpire stores (1982), the third-largest English chainin the sector, laid the foundation for the develop-ment of a new operation in the field of mail ordersales.Finally, the group entered the so-called advancedtertiary sector, setting up Sofra (administrative con-sultancy services) and Sopec (information technol-ogy consultancy services).

A well-designed and adaptable operational set-up,always able to keep pace with market and financialdevelopments, resulted in recent years in the con-solidation and growth of the various Italian opera-tions. This is why the group's top managementdecided to delegate to each company the manage-ment of its own particular market segment.This new arrangement took definite shape in 1986with the reorganization of the group. Under thecontrol of the Lead Company Gecos, a sub-holding,"Gruppo Pam S.p.A.", was formed (in addition to thealready existing "Pam Eu, ope Ltd." which heads theinternational operations).

The Pam S.p.A. group provides guidance, coordina-tion and control to the various companies whichhave been set up over the years.The company strat-egy during the past ten years has focused on thecreation of varying retail sales formulas.

61

62

Today Pam is one of the few large-scale distributioncompanies which, through subsidiary companies,runs activities ranging from shopping centres todis-

count shops.

Another aspect which distinguishes Pam from otherlarge chains is the special e nphasis it places on freshfood produce sold direc ,y to the public by salesassistants.Quality control of fresh products is conducted by anexternal laboratory. Control is effected systemati-cally every time new suppliers are contacted andspot checks are made on all products.The attention paid by the group to the product hasbeen rewarded by the great success met in the pastby campaigns on hygiene and health, promotingfruit and vegetable products which have not beenchemically treated.

This is important not so much from the commercialviewpoint but because it enhances the companyimage and has a considerable impact on customers.One of Pam's most interesting policies in recentyears concerns brand names.The group has created a line of products under thename of "I tesori dell'Arca" (the treasures of the Ark),which are having great success. New products arebeing added under this brand name, which is in thefood field.The Pam group has, over the years, developed andperfected its own special culture: a set of convic-tions and trends which influence and guide basiccompany management choices and individualoperational behaviour. These values have certainlycontributed to the success of the group.

The basic principles can be summed up as follows:pleasing the customerserviceprofessionalismbehaviour standardseconomic management

The main objective is to satisfy the customer and hisneeds; this is the true basis of the success of initia-tives and behaviour patterns.Every action and every energy is devoted to firstunderstanding and then satisfying the needs ofcustomers and to giving them the best possibleservice.

Service is understood to mean courtesy, profes-sional skills, a full range of products, cleanliness,promptness and helpfulness.

The staff are one of the group's most importantresources and must therefore be developed andused to the best advantage. Staff members knowthat their contribution to the company's achieve-ment is appreciated and that their career pros-pects depend on their merits and abilities.

The professional skills of each staff member must beplaced at the service of the customer.

A constructive and motivating internal atmos-phere contributes to professional developmentand job satisfaction: mutual respect between

60

members of staff, good manners, responsiblebehaviour, dedication to the job, all of these arevalues that contribute to the creation and mainte-nance of such an atmosphere.

. The ultimate objective of all company work is toutilize the available resources (human, financial,managerial, technological etc.) profitably andensure the stability, prosperity and developmentof the companies of the group and the peoplewho work in them.

Every choice and activity must respect the need foreconomy.

1.3 Structure of the firmThe present company structure comprises severaloperating companies, the trading activities andpolicies of which are supported, guided and super-vised by the Pam S.p.A. group; the latter also pro-vides them with a series of administrative and tech-nical services in various areas such as: personnel,financial, technical, legal etc., as well as support tologistics and purchasing activities.

The Pam group has 5 distribution centres, situatedin the districts of Venice, Bologna, Milan, Turin andRome.The 5 distribution centres supply all the outlets of thedifferent operating companies.The companies controlled by the Pam S.p.A. groupare:

Pam Supermercati S.p.A.Silos Centri Commerciali S.p.A.Panorama S.p.A.Meta Supernegozi S.p.A.Brek Restaurants S.p.A.

Supermercati PamThe emergence of supermarkets was a historicalturning point in the field of food distribution, consid-ering how shops used to be organized and whatconsumer habits were like.As far as the operations of the Pam group in par-ticular are concerned, those related to supermar-kets are by far the most important, since they aloneaccount for more than 50% of the overall turnoverand half the global sales area.The characteristics of this type of store are: therange of products is wide, customers can movearound easily to make their choices, it is easy to takethe goods from the shelves, payment is done onlyonce at the check-out but the main attraction is theconvenience of finding everything in the sameplace at reasonable prices.The supermarket structure which used to cover anarea of some 800-100 m7 per unit in a central loca-tion has increased over the years to its present size(1300-1400 m2).The 56 Pam supermarkets are divided into five sec-tions, one for non-perishable (canned) goods andthe other four for perishables (meal, fruit and veg-etables, pork products and cheese, fish).The commercial and image policy of this chain hasalways been to guarantee maximum freshness andquality by processing the product directly at thesales outlet.

In recent years large investments have been dedi-cated to transforming the sale of perishable productsfrom self-service to assisted service: specialists in thevarious commodity sectors serve customers directlyat the counter just like in a traditional shop.

Panorama and Silos hypermarketsThe hypermarket is certainly one of the most noveltrading formulas to come out in the last twentyyears.It differs from other mass distribution outlets in size(an area of 3,000 to 10,000 m2), suburban location,long opening hours and quick turnover of goods.As the hypermarket stocks a much wider assortmentof products than a supermarket it can offer a com-plete range of essential consumer goods at verygood value.Panorama and Silos are the group companies whichuse this formula, though with different modalities,

Meta discount shopsCreated during the seventies, Meta shops now num-ber about one hundred in northern Italy and Latium.The management formula of this chain is that eachsales outlet is an autonomous company consistingof the parent company (Meta), owner of the brandname and the formula, and a local business person.The outlet is nearly always run by a family. The par-ent company supplies the goods and certain sup-port services.Atypical characteristic of this chair., where the salesareas do not exceed 400 m2, is that the shops arevery basic, with a simple decor and a limited rangeof products widely used non-perishable goods.Thanks to this formula and the general containmentof management costs, the Meta discount shops canoffer very competitive prices.

Brek restaurantsBrek Ristoranti S.p.A. is a company which has oper-ated in the catering sector since 1975, when the first

Table 1 Head offices of the Pam group S.p.A.

restaurant was opened in Trieste.As already mentioned, the group started an experi-ment in the mid-seventies (based on studies andmarket research conducted by US and Europeanspecialists) which Soon resulted in the establishmentof a chain of restaurants.These restaurants are a novelty on the cateringscene, being a combination of the most moderntype of establishment (quick service and cheapprices) and the traditional local type (differing fromthe former in decor, type of food served and cook-ing methods).The salient points of the Brek formula are:

a catering concept where the convenient buff etsolution allows customers to help themselveshot dishes prepared in front of the customer whenorderedan elegant and comfortable dining room laid outlike a traditional restaurant.

The company, which since its creation has grown to thepresent 9 units, aims at further expansion at thenational level and believes that this form of catering isdestined to become increasingly suited to the chang-ing eating habits of the average Italian consumer.

Organization chart of the Pam groupThe organization chart of the group is thereforeparticularly complex (see table).The head office is supported by a series of divisions:the general affairs division, the personnel division,the technical division and the logistics division.This was the original nucleus of the company struc-ture when only "Supermercati Pam" existed.The subsequent diversification of the trading for-mulas and the emergence of the operating compa-nies led to increased complexity in the organization.It became necessary to set up two central divisionsdirectly under the group head office:the central finance and control division, to which are

Central finance and Operating companies' head officescontrol division (Supermercati Pam - Meta - Silos - Panorama Brek)

Administrativedivision

Treasurydivision

Auditing

Informationsystems

Personnel

divisionSales

division

General affairsdivision

General affairsdivision

Personnel

division

Technical

division

Technical

division

Commercialdivision

Group purchasingdivision

Administrativedivision

Logistics

division

63

f

64

subordinated the administrative division, the treas-ury division, the auditing division and the informa-tion systems division; the commercial division whichincludes the purchasing and marketing division andmakes trading policy for all the operating compa-nies.Seventy percent of buying is centralized, eventhough each company can buy a limited range ofproducts directly to suit different commercial situa-tions.The head offices of the operating companies aresubordinated directly to the group head office; allof them are organized in the same way and brokendown into the following divisions:

personnel divisionsales divisiongeneral affairs divisiontechnical divisionadministrative division

This kind of structure, while permitting the group tohave unified company policies and play a super-visory and coordinating role in the coordination ofthe various commercial activities, at the same timeallows each operating company its own manage-ment independence.

1.4 Human resources294 white-collar workers, 190 men and 104 women232 workers, 218 men and 14 women.

Hierarchical distributionCollective Labour Agreement for the Distribution andServices sector:

24 managers27 executives51 grade I officers59 grade II senior clerks

107 grade III specialized clerks and skilled workers206 grade IV clerks and workers

44 grade V clerks and workers8 grade VII cleaners

Breakdown by type of contract:

510 full-time, including 32 trainee contracts and3 fixed-term contracts

16 part-time.

2. Training policy

2.1 Historical development and currentsituation of training strategy

2.2 Historical development and currentsituation of training structureTraining in the company started during the seventiesto meet a specific need: to provide support to themanagerial structure. At that time it was not so Mucha question of spreading company culture as of pro-viding guidance and assistance to the manage-ment. The teaching methods used were traditionalones with a strong psycho-sociological content.Thisfirst training nucleus formed the basis for subse-quent developments.

62

From the eighties on, when the Pam group organi-zation was consolidated, training started to bemore formally organized.A systematic training plan was proposed andadopted, exploiting as far as possible the participa-tory activities already under way and followingthree main lines:

basic institutional trainingIn the framework of a rationalization of the meth-odology, basic training is the area dedicated tothe managerial structure (grade I, executives,managers).The aim is to follow the staff member concernedthrough every step of his/her career and, in par-ticular, to provida homogeneous guidelinesregarding managerial culture.Basic training is centrally managed and coordi-nated by the human resources division, whichcomes under the personnel division.In recent years, in addition to the managerial cul-ture concept, which only concerns management,a new and more far-reaching c,,ncept hasemerged: the idea of company culture.The aim isto make the group's "watchword" known at everylevel: in other words, a company culture.For this purpose a permanent task force was setup consisting of a representative of the lead com-pany, the head of personnel, and a representativeof each operating company, usually their head ofpersonnel.The task of this transverse structure is to identifythe training needs of all the companies and toplan actions in the field of company culture.This means, for example, that the subject of ser-vice is not understood to mean customer serviceonly, but a global value shared by every companyin the group although each one adapts it to itsspecific situation.In this way training, which was initiaily mana-gerial, works downwards to involve all levels.

ad hoc trainingAd hoc training is more concerned with individualsthan with categories or organizational problems. Itoriginated from a personnel manage..., It systembased on performance evaluation.The system provided, among other things, for aninterview at which an evaluator expressed hisviews on a staff members career prospects and, ifthere were problems, suggested appropriatetraining.Training activities known as "ad hoc training"weretherefore implemented.In time, as career paths emerged, this work devel-oped into career development planning: specialtraining for "promising" internal and external

The duration of the programmes may vary fromtwo years for "simple" ones to as much as fiveyears.They are tailored to the needs of the differentcompanies but are centrally coordinated.

project trainingProject training, focusing on organizational prob-lems, is r ,3inly done in the operating companies.This kind of training was first carried out in the

Pam supermarkets when the structure was beingreorganized and converted from total self-ser-vice to assisted sales.This change had several consequences: the crea-tion of new professional skills, the emergence ofnew organizational problems, a need to create anew atmosphere in the shop and a new kind ofrelationship with the customers.The need was felt for special training programmesgeared to finding solutions for these problems.These programmes were followed by othersdesigned to cover all the reorganizations andorganizational changes which occur in the differ-ent companies.The purpose of this training is less to produce animmediate result as to set a process in motion.In fact, each training programme which starts athead office is regenerated by the first traineeswho, in turn, become trainers of other users in awidening circle in which each time the nucleus oftrainees become trainers.In this way the operating companies enjoy a cer-tain independence in the provision of training.


Observations of the trade unionrepresentatives on a national levelPAM seen by Mario Cesino, secretary general ofFISASCAT-C/SL:

Trade union relations with the Pam group are char-acterized by reciprocal openness to dialogue andcomparison with respect for the roles of both parties.The parties have agreed. to an integrative supple-ment to the National Labour Contract which permitsmanagement of the company's problems in a moreconstructive dimension at territorial levels.With regard to training, however, there is no partici-pation in planning, in decision-making or imple-mentation.The trade union is excluded from these activities.In general terms there is no structured organic train-ing of employees in the Pam group except at theworkplace depending on the qualifications and onlegal requirements regarding apprentices.The trade union continually requests the group toprofessionalize its employees in orderto make themmore specialized, also by enhancing their own par-ticular skills, so as to guarantee better service tousers and to the company.

Pam seen by Michele Malerba, member of theNational Secretariat of UILTUCS-UIL:

Generally speaking, union relations with the Pamgroup are good, even though there are some dif-ferences between the national and the territoriallevels for each firm: inside a firm additional conflictis inevitable because of the various types of prob-lems that can cirise.Over the past 3-4 years the labour relations atmos-phere has improved considerably; there is more dia-logue and less of the "instituzionalizecr type of rela-tionship based on both parties playing formal roles.With regard to training policy, the Pam grouporganizes training autonomously and does not

involve the trade unions in the planning. There-fore one of the objectives of the next supplemen-tary company labour agreement will be to estab-lish active participation by the union in trainingprojects.

Porn seen by Renato Bagatin, member of theNational Secretariat of FILCAMS-CGIL:

The Pam group has an exclusive attitude to training,which is managed autonomously by the firms; theunion has practically no say in training matters.

3. Silos S.p.A.

3.1 General informationThe Silos S.p.A. company manages a number ofhypermarkets in Rome and northern Italy, and isdestined to play an important role in the futuredevelopment of the group.The characteristic feature of the 6 Silos hyper-markets, some of which are integrated in shoppingcentres, is their location on roads with high trafficflows just outside cities.The range of goods sold is extensive and repre-sentative in food, especially fresh food, and there isa textile and bazaar strategy that emphasizes inno,vation and seasonality of sales.

3.2 Human resources387 white-collar workers, 168 men and 219 women403 workers, 178 men and 22 women.Hierarchical distributionCollective Labour Agreement for the Distribution andServices sector:

6 managers9 executives8 grade I officers

62 grade II senior clerks and department super-visors

113 grade III specialized clerks and skilledworkers

335 grade IV clerks and workers257 grade V clerks and workers

Breakdown by type of contract:

456 full-time, including 31 trainee contracts and62 fixed-term contracts

551 part-time, including 32 trainee contracts and54 fixed-term contracts.

3.3 TrainingAs Silos S.p.A. is not a mere sales channel but a trueoperating company with independent manage-ment, training activities at a Silos outlet cannot beconsidered without describing the main Silos S.p.A.training programmes.The personnel division is officially responsible fortraining, but in fact the whole management struc-ture (from grade Ito the managers) has a trainingfunction.All the senior staff are in fact capable, not only ofpassing on their own knowledge and skills, but alsoof handling teaching methodology instruments,organizing the work and holding interviews andchecks on the training process. This decentralized

4)

6,i1w1m1=0.1114M1.01

65

training is an important step in Silos expansionpolicy.

In the area of company culture, Silos participates inthe task force which assesses training needs andplans programmes. These programmes requirewhat we call the "watchword" to be understood atthe managerial level and then put into operation atthe base.For example, the subject of service is dealt with in aninteractive programme supplied on videodiscs forindividual learning backed up by occasional groupconsideration and discussion.

This is aimed at all sales outlets staff who deal withthe public, but the first recipients were the staff ofthe "Delicatessen" sector. Soon all the cashiers andthe staff of the fruit and vegetables sector will bereached.The aims of this product are not simply to train but toeducate in the broader sense of the word, influ-encing peoples behaviour and ways of inter-acting.In addition to this "direct message" type of pro-gramme, there are more complex programmescovering all the activities related to the differentsectors.

For example, in the "Bread and Pastry" sector. thestaff receive training on numerous aspects, rangingfrom the choice of ovens to how to make bread,from profitability and climatic problems to how todeal with customers.Newly recruited staff are also involved in trainingactivities regardless of their type of contract.

These are induction programmes to give generalinformation, to familiarize new staff with the workenvironment and teach them some basic rulesregarding the structure of the company and desir-able behaviour.In these programmes it is the operative staff who actas "trainers".

For new recruits destined to become commercialexecutives there are longer, more complex pro-grammes, lasting up to 3 years. The recipients areyoung people between 25 and 27 years, sometimeswith work experience in another sector, holdingschool-leaving certificates or university degrees.During the first three months they learn abouteverything that happens in a hypermarket. Thethird month they are placed in one of the sales de-partments and this is the first in a series of plannedexperiences in the various sectors lasting for abouttwo years.The teaching plan includes a classroom session afterevery 35/45 days of on-the-job training, withassignment of tasks, monitoring of progress andweekly meetings.

Apart from programmes dedicated strictly to train-ing, a series of activities related to company com-munication and information also take place at Silos.One example is the company newspaper, which isintended for all the staff from the management

66down to grade VII.Arrangements have also been made for ccgats

between various companies, or various bodieswithin the group, for an exchange of ideas onspecific subjects.In line with this concept of interaction, a conventionfor all the managerial staff is being planned for nextautumn.

4. The Silos hypermarket in Parma

4.1 General description of the outletThe Silos hypermarket in Parma, opened in Novem-ber 1990, is the newest Silos outlet of the Pam groupand the one which best reflects the philosophyof theoperating company it belongs to.With an overall area of 3,800 m2, the hypermarketcombines the best aspects of the most up-to-datesupermarkets and hypermarket-type sales areas.It is situated in the Silos shopping centre, close to thecentre of Parma, and has a catchment area of150,000 consumers, 40,000 of which reside within arange of 25 minutes' travel time.

The comprehensiveness of the range offered in theSilos shopping centre is guaranteed by three im-portant businesses: the Silos hypermarket on thecentre's first floor, the Oviesse department store,specialized in men's, women's and children's wearon the second floor, and a complex of twenty-eightshops on the same floor as the hypermarket, whichdo not merely serve as an appendix to the hyper-market and the department store, but are the logi-cal complement to the centre, fully guaranteeingthe possibility of one-stop shopping.

The centre also has a vast car park for 600 cars, withover 400 in the covered space on the entire groundfloor of the complex.

The Silos hypermarket offers a wide range of excel-lent quality, widely-used and essential consumergoods in both the food and non-food sectors, withassisted sales in many areas, for example: fruit andvegetables, delicatessen, fish, bread and pastry, toi-letries and costume jewellery, photographic andoptical goods.The non-food sector accounts for 45% of sales andin the food sector 35% of sales are tinned goodsand 20% perishables.The branch manager has three department headswho supervise the food, non-food and generalservices departments.The latter includes check-outsand the administration of the outlet.Then there are 10 sector supervisors in charge ofthe different organizational sectors of the hyper-market; in some cases they are backed up by assis-tant supervisors.The sector supervisors are in charge of the salespersonnel.

4.2 Human resourcesThe outlet has a total staff of 120 persons, of which50 are part-time staff.The national collective labour agreement (CCNL) isapplied, supplemented by a company agreement.As far as hierarchical distribution is concerned,there are no grade VI or VII levels; grade V is onlyused for new recruits, IV is for junior staff and gradeIII for skilled staff, assistant ;upervisors, goods

receivers and most of the sales personnel; supervi-sors are grade II and the department heads grade I,or executives.

Under the company agreement, part-time staff maynot work for less than sixteen or more than twenty-four hours a week. Ninety per cent of part-time staffhave contracts for twenty hours a week.

The most common type of part-time arrangement isimplemented horizontally, with staff working fourhours a day five days a week, and vertically, withstaff working two and a half days a week, especiallycashiers.

Fixed-term contracts are mainly used to take onseasonal employees at particularly busytimes of theyear.The turnover is fairly low, about 3.5%, because this isa new business which has only been in operation fortwo years.The outlet is open without interruption from 09:00to 21:00 but staff work in shifts from 06:00 to 24:00depending on the needs of the various sectors.

4.3 TrainingThe Silos hypermarket in Parma is involved in all thetraining activities planned by the personnel divisionof Silos S.p.A.

Initial training is given on recruitment to providestaff with the basic information they need to get toknow the company situation in which they are goingto work.Entry in to the company is an important and verydelicate event: the impact of a new environmentand unfamiliar methods and procedures sometimescauses a feeling of partial disorientation andstrangeness.

For this reason, all the new recruits view two video-cassettes, each 40 minutes long, during the sameday, in their first week on duty.The first of these videos introduces the company,describing its history, organizational structure andspecific activities; the second, to familiarize partici-pants with the company culture, shows an interviewwith the chairman of the group, who sums up theprincipal concepts which inspire company strategyand explain its development.The meeting, lasting about an hour, is chaired bythe manager of the hypermarket and the head ofthe general services department, who explain thevideocassettes to the participants and supply addi-tional information of more specific relevance to thehypermarket.To back up the messages transmitted, at the end ofthe meeting every new recruit is given an "inductionmanual", which summarizes the contents of thevideocassettes and describes the main staff rules.The group tries to encourage all employees to makethe company culture their own and feel that theyreally belong to the structure which they have justjoined.This is why training, regarded as an essential ingre-dient for success, does not aim merely at giving staffspecific technical training for a particular job, but atgetting them so involved in the outlets overall prob-

lems that roles can be interchangeable.

Another activity carried out by the Parma Silos isproject training in the work related to the differentsectors.The first programme, started a year and half agoand still in progress, concerns the "Bread andPastry" sector; this is a direct production and salessector installed for the first time in a Silos hyper-market.This new type of service therefore had to be backedup with the acquisition of the relevant know-how.For this purpose the assistance of a leading com-pany in the field of company management wasobtained, which has been working for the Pamgroup for some time now.

This company deals with the above-mentioneddepartment from start to finish, setting up the tech-nical, organizational and training structures fromthe physical design to the professional profile of thestaff, from the equipment needed to actual training.During the design phase, the external consultantsinvolve the entire management of the hypermarketto ascertain the objectives the company wants toachieve and adjust the main lines of the project tosuit them.

The methodology used mainly aims at training thesupervisor and enabling him, in turn, to transmit theknowledge acquired to all his staff and assistantsin other words, to be the trainer of the wholedepartment.Therefore, when the implementation phase, whichnormally lasts for one ortwo years, is completed, thesupervisor changes profession: from a specialistand supervisor of technical aspects, he/she be-comes a fully-fledged training officer.For example, the staff of the "Bread and Pastry"department shortly to open in Rome are presentlybeing trained in Parma.

In this case the Silos supervisor is still assisted in thetraining by the consulting firm, but in the future hewill be able to handle the training by himself, as willothers: the whole department which underwent thetraining programme will become a school depart-ment for all similar structures to open in other outletsof the group.

Training, which takes place during working hoursand continues until full operation, is backed up by aseries of periodic interviews (every 20 days forinstance) at each of which a specific subject is dealtwith; a specific objective is set for the supervisor andits achievement will be checked at the next inter-view.

Another project training operation carried out bythe Parma branch is an interactive videodisc pro-gramme designed by the task force transversestructure.The first videodisc dealt with the "Delicatessen"department ad then all the other departments ofthe outlet, starting with the check-outs, were cov-ered.The aim is to use multimedia instruments to commu-nicate a message concerning the quality of service.

ir+

65

67

The programme therefore attempts not so much toprovide technical skills as to give managementinformation on customer relations; the sales assis-tant is not simply a worker who complies with arequest, but a person who advises consumers andtries to understand their needs.

People who are used to receiving strictly technicaltraining thus also receive training about behav-ioural aspects.The message tries to motivate staff inthe performance of their duties, making them con-scious of the importance of their role and of howtheir way of interacting with the public can contrib-ute to a good company image.The videodisc is very easy to use; the viewer canskim through it, interrupt, go back and concentrateon certain parts, with a feed-back which shows theinteractive character of the programme. Of course,the messages conveyed are easy to understand,because they are designed to communicate animmediate picture, more effective than written com-munication. Twenty-two professional actors, thirty-two extras and fifteen group employees were in-volved in making it.

This programme certainly called for considerablefinancial investment but it has shown excellentresults. It also has continuing validity and the multi-media station ;i at the complete disposal of the salesstaff.To avoid a negative first impact with the machine, ameeting is held before it is used so that managerialstaff can introduce the multimedia instrument withwhich many people are not familiar; participantsare also shown how the videodisc was made and itscontents cre outlined.

When the programme has been viewed by eachstaff member of the department, another meeting isheld to hear their impressions.Opinions collected at the end of this first pro-gramme on the "Delicatessen" department con-firmed the company's expectations. In fact, partici-pants stated that, although they had already uncon-sciously realized the importance of the mattersdealt with in the programme, it gave them anopportunity to think them over and see in practicethe best attitudes to adopt to create optimal rela-tions with customers.

There is another psychological advantage: staff usethis leaching method individually and are free tochoose one solution rather than another. Further-more, the user has the opportunity to understand"Visually" the type of reaction and consequencesassociated with a given type of behaviour.As there are one hundred and thirty patterns tochoose from, each one of which creates a differentsituation, each employee can create his /her owntraining programme based on the replies given.It should be stressed that this programme, like theone operating in the "Bread and Pastry" depart-ment, is an on-going professional training opera-tion, which is repeated periodically.

It is designed for everybody, regardless of their per-sonal abilities; it is not selective, not tailored for staffwho have to travel a given career path.

On-the-job training operations are also used in theSilos hypermarkets, especially for trainee depart-ment heads.The person responsible for the trainingof such staff is the manager of the hypermarket,who is therefore personally responsible for the lev-els of learning achieved. Part of the training is givenin the classroom but the grater part "in the field", inother words in the sales outlet.The task of the manager, who acts as a real trainingofficer, is to teach not so much professional skills as,above all, the company culture by example ratherthan by words.The objective is therefore to equip aperson, through a programme which may varyfromeight to sixteen months, with all the qualities neces-sary to fill the post of department head.

Finally, there are a series of non-structured trainingactivities which each manager carries out inde-pendently in his outlet.

In Parma, for example, in preparation for the immi-nent scheduling of the videodisk for cashiers, fivemeetings chaired by the manager of the hyper-market have been held with the cashiers. The man-ager explained to the participants the importanceof their work: they are the customer's last contactwith the structure and therefore the one whichhe/she tends to remember.At the first meeting statistical data were analyzedand, among other things, it was found that one ofthe things that customers dislike most is a long waitat the check-out; competent and quick work by thecashiers is therefore extremely important andimproves the company image.These meetings, held outside normal office hours,have met with great success, emphasizing the atten-tion paid by the company to the customer, who isconsidered the real capital of the business.

66

5. Evaluations

By the researcherWith the three great areas of basic institutionaltraining, targeted training and training for projects,the Pam group shows that it applies in practice theprinciple that its personnel are one of the compa-ny's most important assets. Through personneltraining and development, employees enjoy theopportunity to progress in accordance with theirmerits and capabilities.

The attention given to individuals, as the normaldevelopment of a system of human resources man-agement based on evaluation of performance;training for high potential personnel; planning oftraining actions varying from two to five years; theadoption of advanced technologies; the formationof a task force as a permanent structure to identifytraining needs and plan the consequent actionthese are only some of the features that make thistraining system a valid model for study and trans-ferability.

By a workerMs. Maria Cristina Giansoldati, full-time level IVcashier at the Silos hypermarket in Parma and anactive union member, made the following statementwith regard to training received:

"The gradual approach achieved by a general This is therefore a very positive opinion.presentation of the group and its objectives, theprovision of an introductory handbook and thetransmission of both technical and behavioural The following persons were interviewed in the Pamknowledge were all very good.

. group:It was possible to test the value of the training re-ceived by putting it into practice. Vittorio MASSAGRANDE Personnel managerYou realize that with an extra smile it really is pos- Pam group S.p.A.sible to make customers more satisfied; you also Spinea Venicebecome much more aware of your own role: thecashier is not just a person who taps out cash Ferdinando PERUZZO Head of personneldockets but a person responsible for giving the Silos S.p.A.last ove:all impression of the firm. Spinea VeniceTo know this is both motivating and satisfying.Other colleagues, all women and mostly part-tim- Giorgio CANDI DO Managerers, also share Ctese views and are happy with the Silos hypermarkettraining they have received; for many of them it Parmawas their first job and therefore also their firstexperience of training."

69

6?

DESPAR ITALIA

1. General description of the company

1.1 General informationIn 1960 a far-seeing group of Italian wholesalersset up the Unione Volontaria Spar, which laterbecame Despar.Despar Italia is a retail syndicate with share capital,linked to SPAR International, which operates in 21different countries and has its headquarters in Hol-land.

Coming under an international trade name not onlyfacilitates the adoption of common policies and theexchange of information and experience betweendifferent countries, it also allows members to main-tain their own financial and management inde-pendence.

in Italy, every member company keeps its own struc-ture and its own name, participates in the DesparItalia Syndicate with joint shares and operates, inconformity with international regulations, within aspecific geographic area.The company operates mainly in the food sector:only 5% of products sold are non-food.

1.2 Recent strategy developmentsDespar, like all associations and cooperatives, issteadily increasing its market share through expan-sionist policies, extending to areas not previouslycovered and to new distribution channels.But the Despar strategy is particularly counting onquality aspects, such as image and services ren-dered to the public, for future development.The aimis to achieve a more distinctive market image, high-lighting the groups special characteristics.

The company plans to modernize itself through 10main lines of action.

Firstly, unified management control, made to meas-ure for each distribution centre, a factor which is ofvital importance for communicating with the 21centres existing throughout the country.

The second line of action aims at introducing an EDI(electronic data exchange) system, consisting of atelecommunications network for the rapidexchange of operational messages betweei headdepartment, the centres and the group's industrialsuppliers.

The third step is to create a unified model for themanagement of stores and renewing logistic sys-tems; this is essential to cope with the developmentof the distribution system and competition in thenineties.

The fourth step is to set up a special network man-agement structure so as to improve operations inthe outlets with the assistance of a team of experts.

In view of the importance of the role head depart-ment plays in the group's relations with industry, itshould be noted that Despar is making efforts toestablish an outline contract at the national level inan attempt to obtain better general economic con-ditions, thus making the company more competitive

on the market and encouraging the development ofthe larger centres without penalizing those thatcarry lower stocks.

The sixth step is to standardize the basic assortment(1,500 items) so as to standardize the range of sup-plies and offer better service to the consumer while,at the same time, giving head department more sayin contracts with suppliers.

Again with regard to the sales network, a newdevelopment model will be prepared for the outletswhich, while keeping to the multi-channel formula,will have a series of reference models available inline with the types of distribution foreseen in thenext few years: wide-coverage supermarkets(Eurospar), hypermarkets (Interspar) and special-ized shops which will make it possible to re-launchtraditional semi-wholesale operations in a new way.And finally, a whole series of actions aimed at actualand potential consumers.

First and foremost, the "/V eglio Despar" (better Des-par) brand name covering a wide range of goods:quality products guaranteed both by the tradename and the brand name.

Another action springing from the Despar market-ing strategy and aimed at the consumer is the great"Operation Loyalty": a year-long sponsored public-ity campaign conducted in cooperation with themain suppliers.The aim is to the increase the numberand value of purchases by casual consumers.Lastly, a large sum will be spent on a publicity cam-paign which will cover the whole country, constantlypresent on the most important media: television,press, sales outlets.

The introduction of the quest for quality into Des-par's strategic plans has led to the establishment ofa quality control laboratory, which at present dealsmainly with brand name products and is rapidlydeveloping.To guarantee the level of the brand-name products,a whole series of analyses at the premises of themanufacturers are carried out by various special-ized laboratories checking on the raw materials, thehygiene standards of product processing and allrelated operations to ensure a constant qualitystandard. Periodically during the year, samples aretaken at the stores and outlets for chemical or micro-biological testing, or both.Quality control also includes packaging, which mustbe in accordance with legislation and provide guar-antees of hygienic quality.

The subject of the quality of Despar's operationsalso affects other areas, such as product packaging(type of packing or the opening mechanism of acan) or the distribution of the products to the Cen-tres.

Furthermore, as quality also means communication,efforts are being made to give as much informationas possible to the consumer on the Despar productpackages regarding, for example, nutrition infor-mation or precautions to be taken this is anothertask of the quality control unit.

68

72

The choice of the brand name is part of the strategyfor the nineties; the idea is to capitalize on the repu-tation already enjoyed by Despar and offer a rangeof "guaranteed", reliable and really competitiveproducts under brands of world renown. This willshortly be implemented in all the accessible com-modity sectors, giving priority to products whichcorrespond most closely to consumers changing lifestyles and habits. The aim is to achieve a singleimage for the whole range of products, one whichalways means quality and better value.

1.3 Structure of the firmThe Despar organizatiorin Italy presently has thefollowing set-up:

21 distribution centres2,553 member outlets, of which:

5I discount stores under the "ScontopiO" trac.;.>name231 superettes (areas ranging from 250 to 399m2)

191 supermarkets (areas over 400 m2)44 Eurospar stores (areas of over 1200 m2)8 Interspar stores (areas of over 2500 m2)16 cash & carry stores under the "Eurocash" traderrIme

The total area of the outlets, which cover the wholecountry except for Sardinia, is 397,956 m2 and totalturnover is estimated at 3,62E billion lire for 1990,not counting the Eurocash stores.

The distribution centresEach of the 21 distribution centres manages a sys-tem which covers all the sales needs for the varioustypes of shop.The data processing centre is the heart which regu-lates the logistic flows in terms of purveying andstorage of goods and their supply to the outlets.All the data is processed by computer and it is there-fore possible to find out the purveying and avail-ability situation of products in the stores in real time;in the same way it is possible to keep changes in con-sumer trends under observation, a vital indicator fordistribution, which enables the real demands of cus-tomers to be assessed.

most advanced goods moving technologies areemployed in the management of stores accordingto their dimensions and rotation possibilities. By theirvery nature, perishable goods require particularcare and structures specially designed for theirpreservation and transport. Goods removed fromthe shelves by computer-regulated mechanisms aresent to the despatch counters to be loaded on todeparting trucks. Prompt delivery is guaranteed byan efficient fleet of trucks which carry the Desparbrand along the roads of the whole of Italy.

The outletsEurocash

Originally started in the food sector as a support tothe stores at the distribution centres, Eurocash shopsnow stock a very wide range of goods. This type ofshop offers a wide range of goods and is capableof satisfying the most varied needs of a hetero-geneous category of users.

69

Eurocash has been experimenting with electronicmethods of payment for some time now.

IntersparThe first Despar hypermarket in Italy, called Inter-spar, was modelled along the lines of "Iperdiscount".It is an innovation, even compared to similar opera-tions which have come on the market in the mean-time and concentrates on the food sector.This model quickly gained a solid reputation andexpanded to include new operations covering awider area, in which the non-food sector developedas the organizational structure acquired the rel-evant know-how.The formula remains the same "Cash" type che!.esfor a mainly hard goods offer, large expanses ofgoods in the perishable sector, a special setting for acomplete range of non-food products; these arethe salient characteristics of a type of outlet whichcontinues to develop.

EurosparTowards the end of the seventies, in a climate ofinnovation, the first operations covering areas ofmore than 1,200 m2 were started in the Desparorganization, mainly in suburban areas.An intuition about the influence that the gradualchanges in the life style of consumers would have onmodern distribution patterns enabled the develop-ment of a service strategy which took the shape ofthe Eurospar model, now widely distributedthroughout the country and with ample expansionprospects.The characteristic elements of Eurospar are a widerange and choice of products and the availability ofpersonalized service in the fresh food departments.The creation of publicity islands, where products canbe tasted and tested and soles assistance provided,establishes contact with consumers and makes theoutlet more attractive.Bar-code scanners at the check-outs, now used in allthe sales units, not only speed up cash-register.perations but make information on product move-ment systematically available.

Despar supermarketsIn the general pattern of the various formulas, Des-par supermarkets are developing in accordancewith a clear pattcrn, ranging from local to small-town supermarkets, not forgetting small shoppingcentres.Each supermarket develops, in accordance withstrategic guidelines, the policies deemed most suit-able for its particular environment.Their outstanding characteristic is pleasant sur-roundings, helpful staff and a high level of service.The quality and variety of services are constantlyinfluenced by experiments carried out in the largeoutlets and adapted where necessary to suit theparticular type of supermarket.The consumer continues to be the reference pointfor all Despar initiatives, which are aimed at meet-ing his /her every demand, in a constant search foran optimal quality/ service ratio.

Despar has become an important and growingorganization capable of meeting the new demandsof consumers through a sales structure organized in

various formats and types.In order to implement its development strategy andconfident in its membership of an internationalgroup with wide ranging experience, Despor haspromoted a series of links, creating companiescapable of planning, financing and managinghypermarkets and shopping centres.The focal point of the Despar organization is thehead office in Milan, which plays a coordinatingrole and produces a series of organizational sup-ports for thE, distribution centres.

The administrative department provides the liaisonwith similar structures in the distribution centres onall matters concerning budgets, membership fees,invoicing of products and services, as well as man-aging the head office itself.It can also provide leasing and factoring servicesthrough Despar Finsing.

The development department analyzes, studies andplans the new outlets, seeking the best locations inline with the most modern concepts in the field ofdistribution.

The purchasing department plays a decisive role in amodern distribution structure with relation to themanagement of commercial activities. Its workranges from deciding on the basic range of goods,making contracts with the suppliers, and implement-ing publicity campaigns.

Other important subjects are private brand-nameproducts, which are becoming increasingly impor-tant in Despar outlets.Despar's present assortment of more than 400brand-name products covers a wide range of goods.The company objective is to increase the turnover ofits own brand names and further expand andimprove the range of products available.The organization also uses cm analytical laboratoryto control the product quality standards.

The network assistance department assists the out-lets with regard to product layout and display ofgoods as well as giving constant assistance with out-let management. This service also uses the servicesof experts who increasingly use information tech-nology to optimize resources and profitability.

The publicitydepartment is involved in the manage-ment of communications on a national level withregard to both produk t and company imagethrough the traditional media (TV, press, radio andposters) and at the outlets. It also publishes two peri-odicals: the company newspaper,"Despar Express",and a news bulletin for consumers,"Il Paniere". Two-week publicity campaigns to promote sales areorganized each year.

The company and the advertising agency preparematerial that makes communication clear and com-prehensive. The material prepared for the cam-paign consists of a packet of supports material forthe outlet. Furthermore, a "prize-giving" scheme isorganized each year to promote customer loyalty:customers collect stamps in exchange for which theycan obtain beautiful gifts.

The training department identifies the needs andpriorities of the outlets and then selects externalconsultancy firms or ready-made training packagesfor the distribution centres (CEDIs).

2. Training policy

2.1 Historical development and currentsituation of training strategyDespar has a history of impressive figures for its train-ing activities: 393 courses were held during the1983190 period, with a total of 5,268 classroomdays and 1,829 persons attending. Students andcontents differed, just as the requirements of eachdistribution centre and each personnel bracket differ.Most training actions, those most closely related tolocal problems, take place on the spot and are cus-tomized for the specific requirements.

As far as more general subjects are concerned theconcept of company quality, for example, or how tohandle meetings courses for representatives of theCEDIs are organized at the Milan head office.Lastly, the number of training courses for companytrainers in the various sectors has increased andmany courses have been offered to the smallerCEDIs and to those in particular areas, Sicily forexample.

Despar training activities are mainly of a practicalkind, but the more technical matters and thoserelated to customer "handling" and, therefore, toemployee behaviour and image are not neglected.Training is not limited to sales staff: every staffmember contributes to the total turnover and,therefore, even the staff who are not in the front lineare involved in training programmes. Courses havebeen held for outlet managers, for the managersof CEDIs, for marketing and purchasing managers,for administrative staff. In any case the objectiveat all levels is to provide better service to customers.With this end in view, a wide-ranging plan is beingstarted, the title of which speaks for itself: "totalquality for the customer".

All staff will be involved, from the shop owners tothe CEDI managers and down to the last employee,and operations will spread outwards from headoffice to involve all the outlying structures.A very important area in which training plays animportant role is that of technology.New technologies develop increasingly rapidly andmanagement of the CEDIs and the outlets is be-coming more and more automated scanners arenow in use in all supermarkets, computer terminalsare also in general use and it is therefore essentialthat the training needed to deal with this changingsituation be available.

The introduction of the EDI system (Electronic DataExchange), which involves the communications net-work between head office, the CEDIs and industry,is part of this new situation.The system was introduced during the 1990-91period and is now in the development phase. Inthe first phase it was used for internal exchange ofdocumentation but the second phase is nowstarting, involving the actual transmission of data,

70

74

orders and invoices, the management of nationalpublicity campaigns on the whole network etc.

A third c. ea in which Despar training is very active isthe management of merchandising.The "Spacement Project; supported by rather com-plex software, analyzes the use of the space avail-able for products with a view to achieving betterproduct rotation.A working group of 6-7 persons has been set upwith the task of keeping 5 supermarkets in variousparts of Italy under observation, as well as othernearby supermarkets with similar characteristics.For each change undertaken, the advantagesand disadvantages noted in the various localitiesare analyzed. The results are then processedand discussed of head office with the aid of acomputer.

2.2 Historical development and currentsituation of training structureDespar's training policy is designed to respond tothe complexity of the organization and to respectthe specific characteristics of each CEDI.That is why a training coordination unit has been setup at head department which ascertains the needsof the various centres and selects external consult-ants or ready-made training packages for theCEDIs.Strictly speaking, there are no internal training of-ficers. However, internal staff are often given train-ing so that they can then train other staff.This is mainly the case in specific sectors, such asthe meat or fruit-and-vegetables departments ofsupermarkets, and it proves particularly usefulwhen new branches are opened.

In almost all the CEDIs there is a person in charge ofinternal training. In the larger ones a particularperson may be appointed -for example the personin charge of members - in the others there is alwayssomebody who carries out these duties, for examplethe person in charge of organization or administra-tion.


Observations of the trade unionrepresentatives on a national levelDespar seen byAntonio Zilli, assistant secretary gen-eral of UILTUCS-UIL:

The company does not have relations with the tradeunion, so that neither training activities nor otheractivities are the subject of information passed andless still of consultation and negotiation.This is an atypical case, deriving from the particularstructure of the company which is emphasised bythe study. The event assumed as the case for analysiswas without doubt useful in demonstrating thenegative character of the company's behaviour interms of social dialogue on a topic such as voca-tional training.Such behaviour should be penalized.With specific regard to training, the case does notseem to help in understanding the character andcontent of permanent training for assistants in the

.11

I . .

.

chain of retail sales outlets of the affiliates.The training activities in logistics might be more use-ful in the analysis of wholesale rather than retailtrading.

Despar seen by Ivan° Corraini, member of NationalSecre'ariat of FlLCAMS-CG1L:

Relations between the unions and the firms belong-ing to the Despar Consortium are almost non-existent at the territorial level.

3. The Seveso CEDI (Sodas)

3.1 General description of the sales outletAlthough this centre, employing a staff of over 100persons, is situated in the Province of Milan, it servesa much wider area. Its area of operation actuallycovers part of Lombardy, part of Emilia and part ofPiedmont, with a total of 280 outlets.The strategy of this CEDI is to have outlets coveringthe whole territory, with a multi-channel network,comprising shopping centres, supermarkets,superettes and minimarkets.Relations with the outlets are direct and mainly con-sist of the provision of services, such as advertising,planning, research, budget, management control,space allocation.Although the network structure has considerabledecision-making autonomy, the relations with theCEDI are always centralized.

3.2 TrainingThe Seveso CEDIs training activities date back to thelate sixties, when the first courses were started.In 1972, a large hall with all the technological equip-ment necessary was specially created for trainingactivities.The courses for the CEDI are provided by theNational Centre.Specialized training courses al e run forthe sales staffof the medium-sized outlets, in sectors such as meat,cheese, fruit and vegetables, lasting five or six daysand including both theoretical and practical work.The practical work consists of placing the staff inmodel outlets thus giving them on-the-job training.A higher level of training course is provided forexecutives and managers of both the centre and theperipheral outlets. It focuses mainly on the manage-ment of small outlets.The following courses were conducted during the1985-91 period (see table I):

Table 1 - Courses

No. of No. ofcourses participants

Commercial purchasing areaCommercial marketing areaAdmin./control areaOrg./personnel areaOrg./logisfics areaGen. management areaSpecialist seminars

06 23

16 60

18 52

05 19

70 27

01 09

11 106

Total 67 296

Table 2 - Summary chart of Despar training activity

Years

No. of courses (sessions)No. of personsDays of attendance

1983 1984 1985 1986 1988 1989 1990

80 84 82 33 40 52 22260 290 350 180 90 189 360999 1196 1055 513 235 550 720

Table 3 - Seminar attendance 4. Evaluations

No. of seminars: 1983/1989 1990

Owners 10 -

Man. & exec. 60Specialists 18

Area managers - 1

Fruit & veg. - 1

88 2

Table 4 - Course attendance

1983/1989 1990

No. of courses 371 22No. of persons registered 1,469 360Days of attendance 4,548 720

By the researcherThe consortium structure of the group and thediversity of the distribution centres which constituteit requires Despar to implement a training policy tai-bored to the complexity of the organization.Even though most of the measures are in the form ofrefresher training, constant attention is paid to sub-jects associated with communication, image andinterpersonal relationships.

The "Total quality for the customer"project is currentlyin the launch phase and will involve all personnelwithout distinction. The training process associatedwith the introduction of advanced technology, on theother hand, has already been started.

Alongside the initial design of a training policywhich, once the training needs of the personnelhave been identified, has sought ready-made train-ing packages externally to meet them, the group isdevoting increasing attention to the role of the"internal instructor" with the aim of transferringexperience and skills to smaller distribution centres

N.B. The company was unable to supply other data on and those located in specific geographic areas.training in time for inclusion.

The following persons were interviewed at DesparItalia:

The teachers are nearly always outside consultantsbut sometimes internal staff give training on the Giancarlo CARON NI General managerbasis of their own experience. Despar ItaliaTraining of executives and managers is always con- Head office Milanducted outside working hours.Participation is optional and numerous. Giancarlo ORSENIGO Proprietor

North MilanDistribution centreSadas S.p.A.Seveso (MI)

7 ()

2.

75

PRENATAL S. P.A.


1.1 General informationPrenatal S.p.A. is a chain of specialist shops in thesector of maternity, babies and children which,thanks to a widespread network of sales outlets, ispresent throughout the nation.It has a capital of 6 billion 250 million lire.Together with Vestro,which operates in catalogue andmail-order sales, Prenatal is among the first five Italiangroups operating in the organized non-food distribu-tion sector with a consolidated turnover which ex-ceeded 665 billion lire (352 billion forPrenatal) in 1988.The Vestro-Prenatal Group is in turn a part of the Prin-temps-Redoute Group, the French multi-distributionleader which operates in food and non-food retail in15 countries.Belonging to such a significant group means anadvantageous opportunity for Prenatal, ensuring thebest conditions to face the "challenge" of 1993.The company has, however, always managed thedevelopment of the chain in Italy with completeautonomy, and indeed, through its shares, it controlsother Prenatal operations in Germany, Austria,Greece, Spain and Portugal.The range of goods offered by Prenatal to satisfy thepractical requirements of its particular clienteleincludes:

clothing for expectant mothers, babies and smallchildrenlarge equipment for children (cots, prams, etc.)toys and gadgets

The majoruy of these products are designed directlyby the companywith the support of its own "productmanagers", who create the Prenatal collections, theproduction of which is then entrusted to externalsuppliers.The selection criteria applied to products are funda-mentally as follows:

safetyutility and practicalityhigh qualityinnovation and inventionconvenient pricingvariety of choices within the product range

1.2 Short history and recent develop-ments in Prenatal's strategyThe company strategy and mission of Prenatalappear intimately linked to its history.Prenatal is the trade mark adopted in 1963 byS.I A.D. (the Italian Purchasing and Retail Company)to describe a specialist retail project addressed toexpectant mothers and babies.

The name Prenatal already existed in France andoriginally the idea of the chain and its name werelaunched in Italy by in collaboration with theFrench Prenatal, although by now the image of theItalian Prenatal has completely veered away fromthe French concept.

The first sales outlet opened in 1964: the idea wasto satisfy all the possible needs of the new motherand those of the child up to two years of age.

Expectant mothers have increased requirementsfc. safety as they face new situations and needs;Prenatal satisfy this need with a market strategywhich is fundamentally based on three main factors:

a specialized product typehighly qualified sales personnela series of personalized services which comple-ment the products offered with all the informationregarding their correct selection and use.

Naturally, over the years the company hasextended its target of reference, widening the agerange of products for children: from the originalmarket segment which included expectant mothersand babies up to two years of age, progressing to5-6 years of age, and arriving at the current rangewhich reaches children of up to 8 years of age.

At the beginning of the 1980s there was a diversifi-cation initiative with the creation alongside "Prena-tal' of another chain, "Ragazzeria", which continueswhere Prenatal leaves off, addressing a targetgroup from 9 to 16 years of age and thus ap-proaching the lower middle school age group.In December 1987, the company changed its officialname from S.I.A.D. to Prenatal S.p.A. (public stockcompany), with registered offices at Agrate Brianza(Milan).

The structural, organizational and commercialchanges which have occurred over time have not,however, modified the culture or the mission of thecompany which, from the very beginning, has beencharacterized by a strong orientation towards itscustomers.If this particular attention to the needs of the con-sumer was sought, at the beginning, above all byintervening in sales behaviour so as to encourage arelationship of trust between customers and salesassistants, over the years this objective has beenpursued by increasing the range of services avail-able to expectant mothers.

For example, in 1984-85, following experimentalresearch into the effects of music during the foetaland neonatal period, Prenatal created "Premusic",cassettes of music created specifically to relaxexpectant mothers and new-born babies.During the same period, shops started providingthe "Prenatal Guide", an instrument for informationand consultation for new mothers with a decisivelyinnovative style produced by the Prenatal ResearchCentre; it immediately found great interest both inthe general public and among sector specialists.

A further Prenatal initiative of particular signifi-cance is the publication of its own magazine,'Mother and Child", which, with its circulation of330,000, is among the most important publicationsin the sector.With this bi-annual magazine which is distributed toall Prenatal customers, the company communicatesall the current contents, fashions, specializations andother information connected to its public image.An important direct marketing operation also fol-lows "Prenatal children"for the first six years of theirlives: on each birthday each of them receives a card

73

77

78

with their name and a present designed for the spe-cific age range.To further reinforce this image of specialist serviceand in response to genuine requests from customers,each Prenatal shop- organizes, once a month, so-called "preparation lessons" to transmit all the pos-sibly useful advice to expectant mothers about birthand the first few months of their child's life.These are lessons which support courses provided inhospitals; their aim is not substituting public struc-tures, but rather offering a valid integrating instru-ment to Prenatal customers.This service. which is operated by carefully selectedand trained Prenatal sales staff, meets with wide gen-eral approval. Its principal objective is not sales, butas has been stated, to reinforce the specialist imageof the company.

The same purpose is achieved by the so-called"safety lessons", which offer parents a genuine,thorough guide to safety, mainly in the domestic envi-ronment, following the various stages in a child'sgrowth.This too has revealed itself to be a highly successfulinitiative which, like the former, requires adequatepreparation and this specific training for salespersonnel.

1.3 Structure of the firmAs already emphasized in the discussion of thehistory of the company, Prenatal S.p.A. diversifies itscommercial activity through two sales channels orretail formulae:

the "Prenatal" shops and trade mark, which com-mercialize clothing and accessories for expectantmothers and children up to the age of two years;these have sales areas from 150 to 300 m': theyachieve gross turnovers of around two billior, lireand employ 6-7 sales people coordinated aqdsupervised by a manager. By strategic choicethese shops are mainly located in city centres andwhere possible in the main streets.

the "Ragazzeria" shops and trade mark, which selclothing and accessories for children and youth.,from 9 to 16 years of age; these have sales area ;from 70 to 200 m2, achieve average turnovers ofover 6 million lire and have two or three sale;assistants.The objective of the company is to open"Ragazzeria" shops close to "Prenatal" outlets.

Table 1 Simplified organigram of Prenatal S.p.A.

The "Ragazzeria" chain, in the first few years ofoperation, met with some difficulty in terms of mar-ket position, also because of the greater presenceof competing chains, but it has gradually grown andtoday is a fully consolidated winning formula.The product is obviously less specialized than atPrenatal, and in addressing itself to a juvenilemarket, is more directed toward fashion, althoughthis remains, as it were, "consolidated fashion",capable of satisfying the taste of the children whilemaintaining the characteristics of quality and safetyinherent to the Prenatal image.

There are currently 156 "Prenatal" sales outlets and32 "Ragazzeria" shops; the objective of the corn-pony is to have 200 outlets by the beginning of1993.

Prenatal S.p.A. has the following structure: a headoffice with various directorates, a warehouse and asales network of 188 shops.The attached organigram of the head office issomewhat simplified and requires, therefore, somesupplementary information: the product division,which manages quality control, the warehouse andlogistics are under the products directorate; thesales directorate consists of the commercial assis-tants who, divided by zone, supervise the activitiesof the various Prenatal sales outlets; the develop-ment directorate is responsible for opening newoutlets, taking care of all the contractual, technicaland legal aspects this entails.

The 188 sales outlets are managed by the companyunder two differing formulae:

direct management: sales outlets which reportdirectly to Prenatal and whose sales personnel isemployed by the company.

There are 77 directly managed shops, 64 of whichbelong to the "Prenatal" division and 13 to the"Ragazzeria" division.

indirect or "contracted" management: shops man-aged by a contractor who signs a contract withPrenatal.

This formula is slightly different from pure fran-chising in the sense that the contractor is not simply aperson who invests money, but a person who is

Administrative &financialdirectorate

Managementinspectorate

Products

directorateSales

directorate

Managing director& Dir.?.ctor general

Personnel & social

relationsdirectorate

Informationsystems

Marketingdirectorate

Developmentdirectorate

7.1

present and who operates the sales outlet, whoemploys his own sales personnel directly, whocovers operating and personnel costs, who effectspromotional activities for Prenatal and receives apercentage of the sales.

The goods on sale in the indirect shops are the prop-erty of Prenatal S.p.A. which, therefore, bears therisk for the goods, since unsold goods are returnedto the company.In all there are 111 indirect sales outlets, 92 in the"Prenatal" division and 19 in the "Ragazzeria" divi-sion.

The choice of Prenatal to manage the indirect salesoutlets with the "contractual" formula rather thanfranchising is motivated by the fact that this particu-lar management formula enables the company tohave the same goods, and thus the same image, inall the shops, whether directly or indirectly man-aged. In the eyes of the consumer, Prenatal shopsmust produce the same image in all their compo-nents.

Besides, this management formula enables the com-pany to intervene directly in the training of "con-tractors" who are trained with the same methodas the direct sales outlet personnel: the aim is toensure that the customer is unaware of the differ-ence, finding uniformity of response and homo-geneity of behaviour in all Prenatal shops.Company strategy is to open direct outlets in largecities (they normally achieve higher turnovers) andindirect outlets in smaller towns, mainly in centreswhich draw a population of 80 thousand inhabitants.

1.4 Human resourcesAs of May 1992, the company had 815 employees:159 at head office, 52 in the warehouse and 604 inthe direct outlets.

With respect to December 1991, when total humanresources had amounted to 818, this represented areduction in the work force which mainly involvedthe head office (4 employees less) and the directoutlets (1 employee less), while warehouse person-nel increased by two units.

Human resources employed in the indirect outletsamount to 618, including the "contractors": thusmore than 1400 people operate in the Prenatal sys-tem, although, as stated, the indirect outlet person-nel is not employed by the company.

Of the 815 Prenatal employees, the majority, 451persons, are employed at grade III of the NationalCollective Labour Contract (CCNL), which is the nor-mal level for sales assistants; 34 belong to manage-ment and 91 are grade I (among those the shop man-agers), 43 at grade11,99 at grade IV and 97 at gradeV.The average age is between 23 and 39 years.

The data also indicate that Prenatal is a predomi-nantly female enterprise: there are only 86 maleemployees and of these only 14 are sales assistants,employed between grades V and III; of the total of729 females employees, 590 work in the sales out-lets and are employed from grade V up to grade I of

the National Labour Contract, which is the grade atwhich managers are employed.

Thus a positive characteristic of Prenatal is that it isone of the few large businesses in Italy wherewomen have the opportunity to scale the heights ofthe company hierarchy.

Further confirmation of this can be found in the datarelative to the personnel operating at Prenatal headoffice: of a total of 23 employees at grade I, thereare 13 women and 10 men; and again of a total of33 management employees, at the highest grade ofthe National Labour Contract, there are 19 womenand 14 men.

Again as of May 1992, the distribution of the workforce in terms of the type of employment contractapplied is as follows:

647 full-timers, 443 in the direct sales outlets (con-centrated mainly at grade III) and 204 betweenthe warehouse and head office (mainly grades IIIand IV);

23 part-timers, 17 in direct sales outlets and 6 inthe warehouse or at head office;

43 short-term contracts almost entirely concen-trated in the direct sales outlets (only 1 short-termcontract is applied at the warehouse, and thereare none at head office);

102 trainee contracts, used exclusively in the directsales outlets, where 87 are applied at grade V and15 at grade IV of the National Labour Contract.

With respect to December 1991 there has been anincrease in full-time contracts (+ 3), a decrease inshort-term contracts (- 3), a decrease in trainee con-tracts (- 5); the number of part-time contracts hasremained unchanged.

(For a clearer view of the distribution of humanresources, please refer to the attached tables.)

In selecting personnel, Prenatal is a poly-centredcompany which tends to create a highly participa-tive internal atmosphere. In fact the managers ofthe direct sales outlets are selected centrally by thepersonnel directorate, and hiring of the sales assis-tants is delegated to the shop managers and thecommercial assistants of the single sales outlets.

With regard to the education of the sales person-nel, almost all the assistants have an upper middleschool diploma and, in some recent cases, a degree.Prenatal personnel benefit from an integrated con-tract which the company negotiates with the tradeunion organizations.

Thanks to a highly positive history of trade unionrelations, Prenatal has very advanced contractualinstitutions: for example, since 1985 working hourshave been reduced to 36, while the NationalLabour Contract stipulates 40 hours, these hoursare then organized according to the variousrequirements of the personnel.

( t.)

79

80

Furthermore, the latest contract includes the right of Table 3 - Average age by grade

female workers to part-time employment from thefirst to the third birthday of their children. May 1992 Company totalThus the working mother has, until the first birthdayof her child, the full contractual protection provided Grade Average age

by the National Labour Contract for Service Industries, with the additional opportunity, provided by Mgr 39

the company, of working part-time for the following 1 34

three years. 2 32

In order to cover the resulting reduction in produc-3 29

tivity, Prenatal can employ another part-time 4 28

worker with a contract for that determined period. 5 23

Table 2 Distribution by grade and gender

May 1992 Company total

Grade Men Women Total

Mgr 15 19 34

1 13 78 91

2 14 29 43

3 15 436 451

4 23 76 99

5 6 91 97

Total 86 729 815

May 1992 Head office


Mgr 14 19 33

1 10 13 23

2 13 24 37

3 5 33 38

4 6 21 27

5 0 1 1

Total 48 111 159

May 1992 Warehouse


Mgr 1 0 1

1 3 0 3

2 1 1 2

3 2 0 2

4 15 23 38

5 2 4 6

Total 24 28 52

May 1992 Shops


Mgr 0 0 0

1 0 65 65

2 0 4 4

3 8 403 411

4 2 32 34

5 4 86 90

Total 14 590 604

May 1992 Head office

Grade Average age

Mgr 38

1 32

2 31

3 29

4 32

5 19

May 1992 Warehouse

Grade Average age

Mgr 51

1 48

2 40

3 35

4 28

5 23

May 1992 Shops

Grade ,Average age

Mgr1 34

2 35

3 29

4 24

5 23

76

Table 4 May 1992

Managers Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Totals

full-time

part- full-time time

part- full-time time

port- full-time time

part-time

shortterm

p-ts-t

full-time

part-time

train- shortee term

full- part- train-time time ee

Headoffice 33 0 23 0 36 1 38 0 0 0 26 1 0 0 1 0 0 159Ware-house 1 0 3 0 2 0 2 0 0 0 35 2 0 1 4 2 0 52

Sub-total 34 0 26 0 38 1 40 0 0 0 61 3 0 1 5 2 0 211

Shops 0 0 63 2 3 1 356 13 28 14 19 0 15 0 2 1 87 604

Total 34 0 89 2 41 2 396 13 28 14 80 3 15 1 7 3 87 815

2. Training policy

2.1 Historical development and currentsituation of training strategyTraining at Prenatal has always been conceived ofand experienced as a central element which isstrictly connected, in an interdependent relation-ship, to the commercial and development strategypursued by the company.It has been stated that all company resources areaimed at satisfying customer expectations, namelyfinding in Prenatal shops qualified personal servicewith a high level of specialization.This concept of service, therefore, does not presup-pose - as in the greater part of organized retailmerely sales behaviour oriented towards courtesyand helpfulness towards the consumer: it is of amuch more complex nature.

At Prenatal, service in fact becomes genuine techni-cal consultancy on the products sold; these, beinghighly specialized, require a great deal of informa-tion as well as pre and post-sales assistance aimedat satisfying the practical requirements of the cus-tomers.This culture requires that those who operate at headoffice work in a manner which best serves those incontact with the customers; it is therefore necessarythat sales personnel be provided with optimum con-ditions to bring the added value of products alive atthe point of sale.It is natural and logical, then, that in pursuing theseobjectives company policy should be, by strategicchoice, concentrated essentially on the develop-ment of human resources: after all, the greater partof the winning image of Prenatal depends on theirwork.

As stated already, Prenatal may have experiencedperiods of change and restructuring, but it wascreated and has developed on the basis of this for-mula of specialized service.Consequently, personnel training does not repre-sent a new or recently introduced element respond-ing to solicitation from the market: it has beenthought of and applied from the beginning as a nec-essary and natural complement of the company mis-sion.

Obviously, over the years, there has been a rational-ization of the methods of intervention, which has led

to the elaboration of a systematic plan of trainingand intervention designed specifically for thediverse personnel groups.

In the past there was an increase in these activitiesfollowing the realization of an ever wider range ofqualified services: the diversification process lead-ing to the birth of the "Ragazzeria" chain in 1987required the creation of specific training program-mes.

However, apart from these natural changes, the cur-rent objectives of training appear almost identicalto those pursued by the company at the very begin-ning: massive constant intervention with personnelin order to spread, throughout the various grades, ahomogeneous culture oriented towards the clien-tele.

In this sense, training activities affect all Prenatalpersonnel, not just those at head office and in thedirect sales outlets, but also the employees of indi-rect sales outlets operating under the "contractor"formula. This is an aspect of fundamental impor-tance, as it demonstrates the determination of thecompany to transmit the same training contentswhere it is not directly present in commercial man-agement and where, therefore, the personnel is notemployed directly by Prenatal.

On the basis of a similar principle, the sales networkpersonnel receives, in both quantitative and qualita-tive terms, the same type of training, independentlyof their function within the sales outlet.

In this sense there is no substantial differencebetween the training of a shop manager and that ofo sales assistant: the aim is that each single compo-nent of a shop should be capable of satisfying withequal competence any type of request or require-ment expressed by a customer. Thus, the content oftraining courses, especially for sales personnel, iswide ranging, encompassing behavioural aspects,specific training on products and sales techniques.

The Prenatal training strategy is designed to informits addresses, not only with reference to the special-ist functions which they cover, but rather taking intoconsideration all the single realities in which the com-pany is structured and all the aspects which deter-mine its performance.

7

81

This training approach enables the company toencourage the growth of a group culture, favour-ing, at the same time, the interchangeability of rolesand a process of internal mobility. The didacticmethods adopted include both classroom training,effected mainly at head office - but occasionallylocally as well as on-the-job training.

Generally speaking, each training programme in-cludes the integration of these two methods in orderto ensure that the participants receive the most com-plete preparation possible, covering theoretical aswell as practical aspects.

Participation in training programmes is obligatoryand attendance is, normally, during working hours.The sole exception is the English language pro-gramme for head office personnel.Thos who expressthe desire to learn this language, although there maynot be c strict necessity, have the opportunity toattend external institutes, at the expense of the com-pany, outside normal working hours of course.

There is no direct relationship between attendanceat training courses and career development orindeed between attendance and salaries. In fact,the company point of view is that training is not anelement for selection or an instrument for satisfyingtemporary requirements, but a means for collectivegrowth; it is for this reason that all company rolesare involved in training activities, not only inmoments of career changes, but continuously.

With reference to the future of training policies, Pre-natal intends to proceed along the road followed sofar, also because of the positive results achieved todate. Recently, however, a need has arisen foremphasis on junior and middle management andgrade I, and it is in this perspective that the next train-ing activities will be planned.

2.2 Historical development and currentsituation of training structurePrenatal has an internal structure for training whichreports to the personnel and social relations direc-torate.

Since there is no large-scale conflict within the com-pany, there is very little work on the trade unionaspect; on the contrary, activities are strongly ori-ented towards the management and above all thedevelopment of human resources, in other wordstowards training aspects.Two people are responsible for these functions: onefor the management and development of the salesnetwork personnel and one for the managementand development of head office personnel.The directorate handles the planning and organiza-tional aspects of training activities, attempting torender them ever more relevant to the diverserequirements of personnel.To this end other company members are frequentlyinvolved in the planning phase, also in order to fullyemploy their internal competence.

In fact, the persons responsible for the various ser-

82vices, who operate in direct contact with employeesand as such constitute a privileged channel of meas-

urement of their requirements, sometimes requestthe realization of particular initiatives. Therefore, insome projects they are called upon to participate inthe analysis of training requirements, which is the ini-tial phase forming the basis of the individual activ-ities. For example, in the current period, the mer-chandising and marketing directors are collaborat-ing with the personnel directorate in planning aninitiative for "Ragazzeria' shop personnel. Thesestaff members will also be involved in the implemen-tation of the training programmes.

In fact, Prenatal training policy in general is directedtowards entrusting teaching to internal resou:--..s,partly because of the high degree of professionalknow-how found within the company.Especially for personnel in the sales network, train-ing and refresher courses inherent to the techno-specialist aspects of management and sales areheld by the person from head office responsible forthat sector of activities.Recourse to consultants and external trainers ismade for certain programmes, which areaddressed either to managers and Grade I person-nel or to shop managers.

The training structure described above and the man-ner in which it operates for the planning and pro-vision of ti aining has not been the subject of sub-stantial change for five years.

Over time there has been, in fact, a growing effortby the company to strengthen and broaden theseactivities with a progressive increase in traininginvestment, as is demonstrated by the overall costsof the training system from 1986 to date (see table).

2.3 New technologies, laws protectingemployees and consumers, changes insales strategy, internationalization, etc.,and their impact on trainingThe most salient factor among these in terms of itseffects on training is the process of internationaliza-tion.

In fact, during the 1980s the company became partof a multi-national group and has, consequently,established close contacts with other Prenataloperations in other European countries, both byacquiring equity control and, more recently, by man-aging their collections (with the exception of Spainand Portugal, which report to Prenatal Spain).

This means that each company official has to estab-lish dialogue with his /her counterpart on a Euro-pean level; this type of collaboration, which will bereinforced in the near future, emphasizes the needfor Prenatal personnel to have good foreign lan-guage abilities.

To satisfy this impelling requirement, the companyhas, in recent years, increased investment in thistype of training: a novelty in this sense is the intro-duction of courses in German and Greek.

The availability of advanced technologies hasenabled Prenatal to prepare training initiatives mak-ing use of innovative didactic methods.

73

These instruments are used mainly in courses andseminars on communications and are conceived asvalid supports to more traditional classroom training.

Table 5 - Overall costs of training

Training in million lire

1992 (forecast) 3,0001991 2,7001990 2,4001989 1,7801988 1,0001987 7001986 5001985 n/a

2.4 Participation of trade unionorganizations in training policyThe company considers that the relations estab-lished over time with the trade union organizationsare positive; thanks to this constructive dialogue, Pre-natal personnel benefit from advanced contractualinstitutions, examples of which are provided above.

A good example of the quality of the relations is thesix-monthly meeting between the trade unions andthe company, called the National Technical Commis-sion, where company performance is illustrated anddiscussed and the principal areas of interventionare agreed upon. This commission also discussestraining programmes and trainee contracts.

The trade union structures do not, however, have anactive part in planning training, because, in the opin-ion of the company, they have until now not demon-strated particular interest in the matter.

Observations of the trade union repre-sentatives on a national level

Prenatal seen by Mario Marchetti, member of theNational Secretariat of FISASCAT-CISL:

Despite the difficulties encountered by the tradeunion organizations in being present in a wide-spread manner because of the reduced dimensionsand the high number of the shops (185) throughoutthe country, and because 60% are manageddirectly, i.e. under franchise, trade union relationswith the company may be considered correct and ata good level.On a national level, the trade union organizationsare informed abut planned investment, new shopopenings, annual commercial trends and activityforecasts by Fector for the coming year.In order to facilitate understanding between theparties on the above-mentioned points, the tradeunion organizations are supplied with a technicalsummary sheet which also includes employmentmovements.The company contract foresees, among other things,a productivity bonus linked to precise parametersand objectives, which are always reached; conse-quently the bonus has always been paid at the maxi-mum sum foreseen.

Training activities are one of the fundamental issuesof interest to the company and the trade unions.Thetrade unions are informed each year of the trainingplanned and there is provision for discussion ofthe strategic objectives of the planned training;methods and techniques remain the prerogative ofthe company.Training programmes are generally divided intofour areas: shop managers, Prenatal personnel,Ragazzeria personnel, head office specialists.The trade unions have repeatedly brought up theargument that vocational training and constantupdating of personnel are winning aspects of strat-egy if all the interacting subjects in the company areinvolved, including the trade union structures. Thecompany has reserved the right to examine thequestion.

Prenatal seen by Antonio Zilli, Assistant SecretaryGeneral of UILTUCS-UIL:

This is one of the companies which has always con-ducted training and refresher activities for its per-sonnel.This is due to the characteristics on which thecommercial formula of Prenatal is based, and to thegoods involved, which require relevant assistanceand customer service activities assistance and ser-vice not only with regard to the product but also interms of prenatal service, so that sales operatorsmust have knowledge of certain aspects beyondthose considered typically commercial.

9'The company has always been willing to supplyinformation and to organize meetings to discuss itstraining policy and content, although it seems reluc-tant to accept anything more advanced or time-con-suming in terms of joint programming and manage-ment of its continuous training activities.The company contract establishes several signifi-cant points in this field.It follows that sales personnel here stands at thehighest levels relative to the professional figure ofthe sales assistant.

Prenatal seen by Claudio Bazzichetto, official ofFILCAMS-CGIL:

Trade union relations in Prenatal are on two basiclevels: on a.national level, through the institution ofa technical commission with the semi-annual duty ofevaluating, on the basis of an information sheet sup-plied by the company, the company results, thedevelopment of restructuring, employment dataand composition of the workforce and a meeting onthe productivity bonus, evaluation of the agree-ment on the variable part of the salary linked togroup turnover.The centralized character of relations is due to thecharacteristics of the company, which has a networkof 80 directly operated Prenatal and Ragazzeria (acompany whose management is linked directly toPrenatal) shops and 105 indirect outlets (franchisecontracts) spread throughout the country and to thefact that current law and contracts do not permittrade union representation throughout.Where this is possible, in the large urban centres,meetings are held with our local structures on theproblems which arise in that area.

79

2.

83

The most frequently discussed question between thecompany and the trade unions regards the eco-nomic performance of the company; its status in themarket of reference; the opening and the transferof shops; increases in sales areas; problems ofemployee mobility; the confirmation of solidaritycontracts.

The training situation within the company has gen-erally been more directed to company require-ments such as aspects of sales and relations withcustomers, although information passed on to ussuggests that training is effected consistently andinvolves, in rotation, all sales staff; recently courseshave been held for office staff and junior manage-ment.No trade union involvement is permitted in the prep-aration of these courses nor in their execution,although an initiative to this effect has been pro-posed by the trade union organizations.

2.5 Description of major programmesThe training programmes run by Prenatal may beschematically grouped into two main areas, eachwith its own internal variations:

a. Sales network trainingb. Head office personnel training

a. Sales network trainingThe desire to transmit a homogeneous companyimage strongly oriented towards the customerrequires continuous interventions by Prenatal onpersonnel right from the beginning.To this end, from the moment of employment by Pre-natal, each new employee is the subject of a specifictraining programme adapted to his/her personnelgrade.This means that, while the content of trainingremains substantially the same for each grade, theinsertion programmes provide different approachmethods depending on the personnel involved.

Insertion programme for shop manageressesThe insertion itinerary for this company role isdivided into six week-long segments:

Week oneTakes place in a shop in an Italian commercial con-text, under the guidance of a "trainer", who is herselfalways a shop manager carefully selected andtrained for the purpose, and under the supervisionof the commercial assistant.During this period, the following information istransmitted to the future shop manageress:The Prenatal image

what the company represents to its public and,more generally, in the current panorama of mater-nity culturewhat instruments are used to transmit this imagethe Prenatal response to the needs of the customer.

Categories of goodsthe categories of goods and the requirements ofthe public these categories fulfilthe relative importance of each category in theentire product rangegeneral criteria in the Prenatal selection of theproducts it offers to the public

n

Sales outlet layout and displaythe display structure of the shopthe sequences of space allocated to each categoryspecial displays and promotions

Week twoAt the same shop as the preceding week with thesame methods as above.In this period, the shop manageress will cover the fol-lowing points:Sales techniques

the role of the sales assistanthow to conduct a salePrenatal services

Communication between the sales outlet and the out-side

the institutions and persons which the Prenatalsales outlet must deal with primarilythe instruments which should be used to approachthem and to what end

The preparatory lessonwhat is it? what is it for? how is it organized? whoholds it?

Checking on the competitionwho is to be considered competitionthe role of the sales outlet in checking the competi-tionwhat to look for and how to communicate resultsto head office

Week threeTo understand the differences between shops, theshop manageress spends this period in a differentsales outlet with another trainer and deals with thefollowing points:Seasonality

shop opening hours in relation to local lawseasonal anticipation of productsseasonality of publicity and promotional activ-itiesseasonal analysis of takings

Product management in the sales outletrelations between the shop, internal stocks andthe warehouserelations between the shop and the purchasingand distribution officerotation speedmanagement of the range offered to the public

Animation and training of working groupshow to transmit informationcriteria for the guidance of shop personnelthe instruments available to a shop manager

Week fourSpent entirely at the Prenatal offices at Agrate,under the guidance of the personnel directorateand/or the shop's secretariat; meetings with themanagers of the activities particularly involved inrelations with shops, namely:Sales directorate

MerchandisingShop secretariat

Marketing directorateAdministrative and financial directorate

AdministrationManagement inspectorateInternal audit

Personnel directorate

AdministrationManagement

Products directoratePurchasingDistributionMadone warehouse

Development directorateInformation systems directorate

Week fiveOnce again, spent entirely in a sales outlet where,besides completion of the points discussed in thepreceding weeks, the following subjects are exam-ined in detail:Administrative procedures

till proceduresaccounting for goods reception and dischargeterminal usefiscal proceduresinventory proceduressales outlet accountingreading sales outlet management printouts

Personnel management and legal requirementsattendance recordsprocedures for employment and discharge of per-sonnelobligatory records (serial numbers and accidentbook)relations with the local public authorities (Employ-ment Office, Labour Inspectorate, etc.)

Week sixThe shop manageress spends this last period oftraining in a shop close to the one where she willoperate in order to gain knowledge of the border-ing areas by accompanying the commercial assis-tant for this zone.During this week all subjects examined in the previ-ous five weeks are discussed once again to permitthe commercial assistant to evaluate the amountlearned by the shop manageress and to further dis-cuss the more critical topics with L. 3r.This training programme is valid both for manager-esses of direct sales outlets, and those of indirectsales outlets, who receive some supplementarydetails in terms of accounting and administration.

Insertion programme for sales assistantsTraining for sales assistants about to begin employ-ment includes, from the point of view of specialistknowledge, the same content as the insertion pro-gramme for shop managers, but it is much morediluted over time. It is in fact applied day by daywithin the sales outlet by the shop manager oranother expert sales assistant.In all there are two years of continuous training, dur-ing which sales personnel come to know, departmentby department, category by category, all the prod-ucts in the shop and their particular sales techniques.To this end, some technical information sheets havebeen prepared recently to illustrate the principalcharacteristics of each product; the end result willbe a series of extractable page manuals for consul-tation which, regularly updated, will be available toall sales personnel. These, then, are the didactictraining materials, created centrally by head office,which each shop manager illustrates and discusseswith her working group.

Naturally the training programmes for the salesassistants differ in the subject matter for assistants in"Ragazzeria" shops.Here the product is different, less specialized; on theother had the sales techniques are more compli-cated, since personnel must be able to relate nolonger to a single interlocutor (the expectantmother), but to two or more (child and parents), eachhaving different requirements. Thus training onsales techniques is particular and strictly connectedto a specific market segments.

The discussion so far has focused on insertion pro-grammes applied to staff joining the company.These, however, should not be considered mere ini-tial training programmes, firstly because they are ofconsiderable duration, but above all because bothduring and after their application the addresses areinvolved in further training initiatives. This is mainlyclassroom training provided centrally which periodi-cally involves Prenatal sales personnel.

The purpose of this training is to provide continuousrefresher courses and to establish direct contactbetween the head office and the periphery: it ismotivating for personnel to have a constant rela-tionship with the company and, at the same time, forthe personnel directorate, which undertakes theseactivities, it is essential to have a close view of itshuman resources and to evaluate their potential.

The shop manageresses, for example, receive anaverage of 4 days of classroom training per year.These courses deal mainly with communication andaim to transfer to these company members aspectsof leadership and instruments for management,control, animation and for the training of their ownstaff.

In fact, the company strategy is training managersso that they can then exercise the role of trainerboth for other shop managers during insertion andfor their own staff.

Besides, many activities within the sales outlet areaddressed to the motivation and the involvement ofsales personnel and, in these circumstances, theshop manager assumes the role of animator: forexample, at the beginning of the year she illustratesthe commercial status of the sales outlet to her work-ing group and prepares with them the annual salesforecast for each category.

There is also a great deal of paper communicationfrom head office to the shop every week, and eachmanager meets with her staff to inform them ofevents in the company in terms of sales policy ororganizational changes and discusses with them theadaptation of these changes to the sales outlet.It is natural that these initiatives create a participa-tive atmosphere within the sales outlet and sustain aspirit of adhesion to the commercial objectives and,in this sense, the company considers them part oftraining, well beyond the classroom sessions whichare also provided.

The sales assistants too, besides constant training inthe shop, participate in training courses at head

tat

85

86

office (on average two days per year.)Within the shop there are, then, employees whohave to be specially prepared with supplementarytraining, which involves on average 4 days in theclassroom per year.These are the "preparatory experts" and the "safetyexperts", who periodically hold the lessons referredto above for 40 to 80 expectant mothers.Usually in each sales outlet one or two sales assis-tants from the 6 members of the group are calledupon to cover this function and are thereforetrained to speak in public and to acquire specificknowledge regarding prenatal and neonatal mat-ters.To this end these experts, as indeed the shop man-ageresses too, maintain frequent contact with con-sultants, hospital structures and paediatricians, andcre invited to participate in groups of 150-200 peo-ple in specialist conventions in this sector.

b. Head office personnel trainingThere is also a training programme of one or twoweeks for persons joining the head office staff.This training comprises a fairly long period of meet-ings "in the field"with the persons responsible for thevarious company functions: these are days spentlearning about the company and establishing adirect relationship between new employees and thecompany.

At the end of this first stop, there is a period spent at aPrenatal shop so that new head office employeesunderstand the problems of the sales network.Besides insertion training, head office personnel peri-odically participate in continuous training activities.Junior managers normally receive 5 classroom daysper year as well as participating in specialist semi-nars linked to their duties.Classroom training addresses mainly managementissues: there have been courses on the role of thesupervisor, on communications, on the manage-ment of staff.For some junior managers, such as area managersor commercial assistants, there are activities on per-sonnel selection, training them to be selectors.This type of training is planned by the personneldirectorate and involves a considerable overallbudget, while other activities initiate from proposalsby personnel.

Finally, certain "para-training" animation activitiesare organized which involve all head office person-nel and all sales outlet managers: these are theannual conventions, where the Prenatal collectionsare presented and company strategies are illus-trated.The objective, once again, is to stimulate par-ticipation in the company culture.

3. The Prenatal shop in Bergamo

33 General description of the sales outletThe Prenatal shop analyzed here is a directly man-aged shop at Bergamo, located in a central areaand thus capable of reaching a high user reservoir:930,000 people in the city and province.It belongs to the "Prenatal" division and thus aims ata target group which includes expectant mothersand children up to 8 years of age.

-1 8 2

Opened in January 1972, the shop met with immedi-ate success, so much so that it has become a pole ofattraction for the competition, which has openedsimilar structures in the immediate surroundings: theresult is that today Via Paglia, where the Prenatalshop stands, is known cs the baby shop street.The building has a sir:9;e floor and covers 230 m2,193 m2 of which are reserved for sales.Over the last ten years its annual growth figureshave been 20-25%, with peaks of 37%.

Its current turnover is well beyond three billion lire.In 1991, 52,0878 receipts were issued; this figure dif-fers little from the immediately preceding years,although in comparison there is a progressive in-crease in average expenditure per receipt.This indicates that, over time, the number of clientshas consolidated, demonstrating fidelity to the shop.As with all Prenatal sales outlets, the Bergamo shophas a mobile, open display structure (the "Grill"),designed to guarantee maximum flexibility in goodslayout and display and, above all, to give the publicfree access to the displays.

The products on sale are divided into 8 departments,each clearly denominated:

Children's clothes and accessoriesBaby clothes (9 to 18 months)New babies (fixtures, fittings and furniture)New babies (accessories, bottles, pacifiers, etc)Underwear for expectant and nursing mothersLadies' outerwearLarge accessories for babiesToys and gadgets

In perfect accord with company commercial policythe Prenatal sales outlet enhances the value of itsproduct range through personalized service whichaims at encouraging customer fidelity.The moment of sale is therefore fundamental and thepreparation of staff tends to focus on the quality ofthe service rather than on the quantity of goods sold.Besides assisted sales, the Bergamo shop offers thecustomer a further range of services which includesreturned goods, deposits, the "Kangaroo Cardscredit service, home deliveries and, naturally, thepreparatory and safety lessons.

3.2 Human resourcesThe sales outlet analyzed, on the one hand, con-forms to the structural and organizational aspectsof all the other shops in the Prenatal chain, on theother it differs slightly in the number of staffemployed, the average being normally 6 or 7 peo-ple.

In fact the Bergamo shop employs 10 people, whobeing all women confirm the prevalently femalecomposition of the company work force.The team is composed of one grade I shop managerwith a full-time contract and 9 sales assistants dis-tributed as follows according to the contract stipu-lated and the grade applied:

6 full-timers at grade III2 at grade IV, one full-time and the other with atrainee contract

1 at grade V with a trainee contract.

This distribution reflects the sales network humanresources management policy applied by the com-pany, according to which sales assistants are em-ployed at grade V with a trainee contract which lastsfor 24 months; after 18 months they are promotedto grade IV and they finally reach grade III of theNational Collective Labour Contract (CCNL) 30months after employment with a full-time contract.Personnel operating in shops is decidedly young:from 34 years of age for the average manager toan average age of 25 for sales assistants.

The level of education of the work force also con-firms the trend data collected within the company:for every 10 employees eight have secondaryschool diplomas and two are qualified, that is to say,they possess technical-vocational diplomas.

3.3 TrainingIt is difficult to discuss training activities at the Ber-gamo shop without the risk of repeating the amplediscussion of company strategy and the descriptionof the main training programmes.

The Bergamo shop, in fact, is involved in all theinitiatives prepared by the personnel directorate forthe sales network.And it could not be otherwise, given that the primaryobjective of Prenatal is that of transmitting a uniformimage to the customer, intervening with sales person-nel in a thorough and homogeneous manner.It is, however, interesting to examine in detail themanner in which training is given, the subjects dis-cussed, the effect on the activities of the shop and,finally, how it is experienced by the participants.First of all the role of the shop manager is signifi-cant: as we shall see, she is simultaneously traineeand trainer.

Precisely thanks to the initial training and the con-tir,:aus refreshment that she receives, the manager,besides acquiring more competence in sales activ-ities and in managing her personnel, is able tobecome, in her turn, a trainer.In this sense the manager of the Bergamo sales out-let periodically hosts, for one or two weeks, othermanagers who have just joined the company.

In this case it is her duty to preside over their training,transferring theoretical and practical competence;the subjects of these activities c::e those illustratedabove with regard to th-3 insertion programme (seesection 2.5).Subsequently the trainer is also called upon to eval-uate the potential of a new shop manager, verifyingnot only the knowledge acquired but also that theperson has certain prerequisites, such as leadershipcapacity, the ability to animate and motivate aworking group, as well as a good deal of enthusi-asm for her own dutir.s.These ore the abilities which the company considersfundamentol for the management of a sales outlet,since if professionalism is not accompanied by thesebehavioural gifts she will never imbue her sales staffwith that stimulating, participative atmosphere whichis the principal success factor for Prenatal shops.

At the same time the shop manager is required toconstantly train her own staff, from those with someyears of experience to the newly employed, whoreceive particular attention.

The company uses trainee contracts for newlyemployed personnel, committing itself to guaran-teeing them continuous training for a two-yearperiod.In-shop training begins with the simpler productgroups and proceeds 'gradually up to the specialistdepartments (expectant mothers and new babies),which require particular expertise; the shop man-ager, supported by the loose-leaf manual suppliedby the head office, attempts to enrich the content oftraining with examples from her own professionalexperience.In this process nothing is left to chance nor areapproximations allowed: the proof of this lies in thefact that no newly employed sales assistant beginssales activities before the end of the training period,before she has been exhaustively prepared on allthe product groups.

The participation of the entire sales staff in trainingthe newly employed is worthy of note.The transmission of certain information is delegatedto the shop manager and to those sales assistantswho, having experience in the shop and havingtaken training courses, are particularly expert.

The classroom training provided for sales staffre-examines and enriches the subjects of traininggiven in the shop by the manager, in order to furthercement the transmission of their content.The courses, which are held centrally or locally, arerun by head office personnel generally assisted by azonal commercial assistant.Almost all the activities foresee group sessionswhich allow the participants to verify in practice thevalidity of the messages transmitted.

For example, in the courses on sales techniquesthere are simulations where each trainee has toconduct a sales dialogue, attempting to face thevarious phases in which it develops:

explorationinformationdiscussionconclusionassistance

Each time, the group watching the simulation isrequired to express an opinion, evaluating whethercommunication was successful or not.

Of the 9 sales assistants in Bergamo, two are"preparatory and safety experts": they thereforebenefit from special training for the execution of thisrole.In this type of training, didactic support is availablefrom experts outside the company.

Thus the presence in the classroom of a psychologisthelps the "experts" to understand the psychology ofthe expectant mother and to relate to her in the cor-rect mariner; paediatricians and obstetricians help 87

88

in the transmission of specialist information in theirrespective fields.A symptom of the participative climate of our shopsis the fact that anyone who attends an externaltraining initiative systematically transmits, upontheir return, the information received to the entiregroup.

In conclusion, it muy reasonably be stated that in theBergamo shop, training, far from being an isolatedevent, separate from the life of the sales outlet, con-stitutes an integral part of normal sales activitiesand is an experience shared, as a daily moment ofgrowth, both individual and collective.

4. Evaluations

By the researcherPrenatal commercial policy, which is based on a spe-cialist type of product and highly specialized servicedesigned to confirm the expectations of the clien-tele, determines, by its very nature, a need to con-sider the growth of its human resources as a primaryfactor in development.

There is thus a close relation between the trainingprovided to staff and the basic strategic objectives.Of equal relevance are the planning and executionof systematic interventions, which on the basis of theanalysis of internal requirements are divided in abalanced manner between head office and salesnetwork personnel.

It is extremely positive that in training no element isexcluded to the advantage of others; on the con-trary, a serious attempt is made to take into accountin equal measure all aspects of training: from thetheoretical components (classroom training) to thepractical aspects (on-the-job training), from trainingintended to transmit specialist competence to train-ing which affects the behavioural sphere.Similar consideration is due also to the addresseesof these activities: all employees are involved, inde-pendently of their grade and, even more signifi-cantly, without distinction between personnel ofdirectly managed or indirectly managed shops.

The tendency to involve internal personnel in train-ing activities is strategic: the importance of the func-tion of the shop manager as a trainer for sales per-sonnel and that of head office managers, to whomclassroom training is delegated, emphasizes thecorrect intuition of the company that the moreemployees are committed to the role of trainers, themore they are motivated and the more they attemptto grow.

On the whole, Prenatal is a participative company,where the human factor is prevalent and where allthe employees demonstrate spontaneous adhesionto company policies.In our judgement, this training model is completeand is definitely transferable.

In particular we consider that because of the fami-ly atmosphere which the company has maintainedover time and above all because of the fact that itsshops have limited sales areas -the training sy 'em

which affects the sales network constitutes withoutdoubt a valid example for training in small tomedium-sized businesses.

By the employeesWe have collected two testimonials from Prenatalemployees: one from the Bergamo shop manager,Ms. Marinello Trotta, and the other from a salesassistant in the same sales outlet, Ms. MarinaCaccia.Both gave positive evaluations of the training activ-ities in which they are involved. An interesting orsymptomatic fact lies in the frequent verbal use ofthe first person plural, an element which confirmsthe climate of involvement and collaboration in thecompany.

In detail, Ms. Trotta stated:

"The training activities in which we participateperiodically are of vital importance to us, as theyallow us to develop and to be completely, homo-geneously prepared. In fact each of us withoutany role distinction -is capable of giving the sameresponse to customers.We experience training with great enthusiasmbecause we are stimulated to change andimprove continually, and we can see the benefitsevery day, weighing the improvements in ourwork.Despite initial doubts, I found the communicationscourses with the use of a video camera extremelyvalid; being filmed during the simulation of saleswith the opportunity to view oneself is extremeluseful, offering a chance for self-evaluation.But training also means the chance to enjoy get-togethers and collective reflection: because ofthis, besides the activities planned by head office,we meet to discuss the company situation, wedebate the performance of our shop, we agreeon initiatives aimed at its improvement.We don't want to fall into a daily routine and sowe are always looking for more stimuli for ourwork.My role as trainer is extremely gratifying to me,although it requires a substantial daily commit-ment, which is added to those of sales and shopmanagement.We, the Prenatal trainers, although we have occa-sion to meet in small groups for training courses,have requested the company to plan specificmeetings for trainers. Our need is to dialoguebetween colleagues, to compare and to start aprofitable exchange of experience to be ever bet-ter trained to train."

Ms. Caccia, a grade III sales assistant, "preparatoryand cqfety expert", with 18 years' experience in thecompany, stated:

"Training is a fundamental element of develop-ment for us, it helps to acquire professionalismand security in sales activities: in fact selling iscommunicating and communicating means trans-mitting reliability to the customer.As I am also a consumer I recognize that there isno comparison between Prenatal sales assistantsand those of any other shop; the customer

chooses us and relies on us because we are pro-fessionals, because of the extra service that weoffer.As preparatory and safety experts we are so wellprepared that we often cause strange reactions inthe public: participants in our lessons see us assuch experts in the prenatal and neonatal fieldthat they are reluctant to consider us primarily assales assistants. this is very pleasant for us and itmakes us all the more aware of the importance oftraining, the results of which are tangible to ussince we see the concrete results day by day in ournormal activities."

The following persons were interviewed at Prena-tal:

Dario Pasquale

Marinello Trotta

Marina Caccia

Prenatal personnel directorHead OfficeAgrate Brianza (MI)

Prenatal shop managerBergamo

Prenatal shop assistantBergamo

89

PART 3:

1. Conclusions

2. Bibliography

3. Annex

86

CONCLUSIONS

The firms studied in the Forter survey were selectedin agreement with the representatives of the work-ers and the employers. The studies deal mainly withlarge-scale distribution chains, because the particu-lar nature of Italian trade means that most on-goingtraining programmes are conducted in big organ-izations.However, two of the five cases deal with organiza-tional models of the cooperative and consortialtype.This choice shows that even small and medium-sizedfirms can, through cooperative structures, achievethe same objectives as larger organizations.For these reasons we consider that the case studiesare representative of the on-going training activ-ities being conducted in this country.

1. Planning and design of trainingTraining increasingly tends to be regarded as anelement which makes a vital contribution to thedevelopment of a firm.This consideration is based on the widespreadawareness of the role played by human resources.After years of paying tribute to technological inno-vation as the solution to most, if not all, businessproblems, the importance of people as an indispen-sable resource is now firmly emerging.It must also be remembered that, for commercialenterprises, human resources are made up of bothstaff and customers; that is why company objectiveshave to be translated into training activities thatmake it possible to achieve them.It is no coincidence that one thing all five situationsstudied had in common was that importance wasattached to achievement of quality of service notmerely through product quality but also throughenhancing the qualifications of staff.

Planning is in a particularly advanced and well es-tablished stage in major large-scale distributionfirms, where strategic planning has always been afeature.It should be noted that planning is not only done bystaff specifically responsible for it but tends to affectand involve the staff as a whole through the forma-tion of "improvement groups" in the RinascenteGroup, "project groups "in Pam and "quality circles"in COIN.These forms of liaison between management andstaff create feelings of solidarity in line with a con-cept of the firm as a place where interests do notnecessarily conflict but actually coincide althoughthey may be of a different nature.Planning in cooperatives and company groups alsoshows increasing awareness of the strategic rolesplayed by training.

One example of this is the move from the initial pro-posal of ready-made packages to thr. prevision ofsolutions better designed to suit the needs of thestaff; the creation of special structures to takecharge of training (Coned) and the elaboration ofglobal projects covering the whole staff (Despar)are further examples of this new approach.

The establishment of bilateral organizations com-posed of employers and trade unionists, which wasproposed during collective negotiations with a view

to promoting and developing professional growthof staff, also favours the systematic planning oftraining.There are still, however, divergences in attitudes tothis problem: in particular, the workers representa-tives tend to insist on greater decision-makingpower in the establishment of programmes and onprogrammes generally having a multi-purposestructure.

2. The staff affected by trainingFrom being reserved almost exclusively for mana-gerial staff, training has gradually begun to involveall the staff as a natural consequence of the impor-tant role played by human resources regardless ofthe type of work done.With this approach, even part-time workers (mainlywomen) and short-term employees take part intraining activities; in some case training is givenbefore opening or establishing new structures.

3. Content, methods and organizationIn addition to job-related training, which continuesto be important, especially for the food sector and,generally speaking, to the use of information tech-nology, there is a growing trend towards usingtraining as a means of transmitting the company'saims and values to the staff.The involvement of all staff in these projects, includ-ing personnel already trained, helps to spread acommon culture and facilitates internal mobilityprocesses. The content is nearly always related tothe area of human resources. It is transmitted bymeans of advanced technologies and, in somecases, multimedia interactive technologies whichpermit active participation.

Training is usually done at the work place; in somecases there are specially equipped rooms for thispurpose. In each firm there are divisions and/ordepartments responsible for training.

Despar and Conad are exceptions to this rule: thelatter uses an external training structure which,however, belongs to the consortium.

It should be noted that there is a widespread ten-dency to make all management structures "trainingstructures" ond, in any case, to favour the idea of theinternal trainer.The length of courses is extremely variable; theymay range from 2 or 3 day modules to, in the case ofspecific training, projects which last for 2 years ifthey are simple or as long as five; there is also the 12day 'Master for Buyers" course and even a fewhours a week for English language courses.The duration and recurrence of other activities suchas the "pilot workshops", the "improvement groups"and the "project groups" vary according to require-ments.

It should be pointed out that important steps havebeen undertaken to ensure that the educationgiven at school corresponds to the needs of busi-nesses.

the Ministry of Education and the Italian GeneralConfederation fo' Commerce,Tourism and Services

87

(Confcommercio) have signed an agreement topromote a better relationship between schools andthe working environment.In practice, employers go to the schools and explainthe needs of the firms, experimental programmesare carried out and students spend periods in thefirms to learn more about their problems andrequirements.New ideas come into the working environmentbefore they reach the textbooks and this is why it isdifficult for schools to keep up with changes.

We are moving towards a society where training isdestined to become permanent at everylevel; in thisenvironment on-going training in firms is essential,not so much to make up for any deficiencies of theschool system but rather because decision-makershave realized that it is advisable to keep on learn-ing.

4. Costs, financing and evolutionCosts-benefits analyses favour training because theprogrammes continue to be encouraged andexpanded.Altkcugh we do not have exact figures, the firmsconfirmed the importance and profitability of in-vesting in training for overall development.In some cases firms obtain funding from the Euro-pean Social Fund and take advantage of incentivesavailable under trainee contracts, which encouragethe employment of young people by reducinglabour costs on condition that the persons con-cerned participate in training programmes duringtheir work.It is realistic to assume that firms will continue toinvest in on-going training with particular emphasison problems related to the objective of quality ofservice and thus on everything related to theenhancement of human resources (interpersonalrelationships and, in general, communication).

The importance of interpersonal relationships andcommunication was also stressed by the Confcom-mercio representatives at the meetings in Brussels atwhich the Memorandum on Training in the RetailTrade was drawn up.

The first recommendation adopted by the workinggroup is in fad related in the framework of generalcommercial training - to training in the sector ofsocial communication.

The importance attached to this subject can also beseen by the attention paid to it by those runningsmall businesses.

A survey under way on the quality of sales servicesin small businesses confirms that characteristics suchas courtesy, helpfulness and skill in interpersonalrelationships are regarded as essential.

It therefore appears that all the firms in the sector,from the largest to the medium and small ones, areconvinced that their real "wealth" is not so much theproducts as the human resources in the two aspectsof who provides the service and who receives it.Maximum attention, therefore, has to be paid topeople - be they staff or customers.Certainly the smaller firms, which are the vastmajority in Italian trade, still have a long way to go inthis field.The prejudice which has been conditioning the busi-ness world for so long is gradually beginning to dis-appear.In fad, in the past people believed that a certaincapital and a good measure of risk were enough tostart a business.It is now realized that improvisation does not payand that professional skills are vital at every level.

Small firms have two ways of comreting with thelarge ones:

specializing and improving their services becausebeing modern does not mean simply adoptingadvanced technologies;forming associations and cooperating with otherfirms to achieve objectives which they could notachieve on their own.

The abolition of barriers will favour this processwithout interfering with the Italian approach todevelopment in this sector.

88

BIBLIOGRAPHY

M. Amoroso, Realty e sviluppi del franchising inItalia, VEG E, 1990.

CERVED, Movimprese Movimento anagraficodells impress itallane, various years.

CESDIT, II commercio nella struttura deli' eco-nomic, Milan.

CESDIT, I gruppi di acquisto: realty e prospet-tiva, Milan.

CESCOM, Second° rapporto CESCOM sulla dis-tribuzione commercial. in Italia, F. Angeli,Milan.

CNCC, (Consiglio Nazionale Centri Commerciali) I cen-tri commerciali in Italia Censimento al31. 3. 1990, Milan, 1990.

CNCC, I centri commerciali come strumento diinnovazione, Milan, 1990.

CREL, Terziario per ('Europa, UILTUCS, Rome,1989.

CREL, Osservatorio sul Terziario, UILTUCS, Rome,1991.

Confcommercio, Kapporto suirevoluzione coca-nemica nel 1989, Rome, 1990.

EUROSTAT, Occupazione e disoccupazione"1988" topic 3, C series, Brussels, 1988.

S. B. Fara, Le autorizzazioni per il commercio,Buffetti ed., Rome 1991.

L. Frey, B. lacobelli, Lavoro e formazione nel com-mercio in trasformazione, in Quaderni di Econo-mia e Lavoro, no.40, F. Angeli, Milan, 1989.

L. Frey, Le prospettive della problematica occu-pazionale in Italia nel 1992, in Tendenze dell'oc-cupazione, no. 11-12, Nov.-Dec. 1991.

L. lacovine, L'associazionismo nella distribu-zione non alimentare, EGEA, Milan, 1990.

ISCOM, II credito agevolato al commercio, issueno.26, Rome, 1988.

ISCOM, II sistema terziario in Italia, issue no.30,Rome, 1988.

I STAT, Statistiche del commercio intern:,, -,..YJSyears.

ISTAT, Conti economici nazionali occupazionee redditi da lavoro dipendente anni19801988.

A. Lamanna, Manuals dell. leggi sul commercio,ED. IEDEP, Rome, 1989.

E. Meneghetti, Sviluppi localizzativi dellagrand. distribuzione alimentare, in Commer-cio, no. 3Z 1990.

S. Mignano, I finanziamenti per l'innovazionedel commercio, Agenzia Naz. Assistenza TecnicaImprese Terziario, Rome, 1991.

Ministero dell' indusiria del commercio e dell' artigianato,Caratteri strutturall del sistema distributiveItalian°, various years.

A.C. Nielsen, La distribuzione dei grocery inItalia.

G. P. Prandstraller, Le nuove professioni nel ter-ziario sul professionismo degli anni '80,Milan, 1989. Research project edited by F. Angeli.

R e't, La distribuzione organizzata, Milan, 1988.

Various. authors, La distribuzione moderna alservizio del consumatore, F.A.I.D., Milan, 1989.

Various authors, Ruolo della cooperazione traImprese del setter. distributive, in Commercio,no. 34, 1989.

Various authors,Terziaria,laverateri,lavoratrici,sindacato, contralti, issue no. 3, Dipartimento ter-ziario CGIL, Rome, 1990.

Various authors, II costo del lavoro nelle aziendedel commercio imprenditoriale nel 1990, inNotizie F.A.I.D., no. 86, September 1991.

Various authors, Le grandi unite di vendita al31.12. 1990, in Notizie F.A.I.D., no. 87, November1991.

8a93

ANNEX

1. Comments by trade unionrepresentatives on the research report

1.1 Comments from FILCAMS-CGIL on theresearch report by Giuseppe SilvestroThis research represents an interesting study of thesituation of continuous vocational training in theretail trade in as much as

it is the first significant picture of the current train-ing situation in the retail trade sector;

it represents a possible instrument of referenceboth for companies and for sector trade unions;

it contains various useful elements for the elabo-ration of a continuous vocational training strat-egy in favour of Italian workers in the retail tradesector;

it shows fairly unequivocally the insufficient pres-ence of continuous vocational training in the com-plex, dusty company panorama in the sector;

it notes the need to apply continuous vocationaltraining as an indispensable element for thedevelopment and growth of both workers andcompanies;

it describes an Italian training system character-ized by limited exchanges between systems(schools, universities, businesses, trade unions, theworking world in general, training);

it explicitly shows up the need to promote opera-tive collaboration between businesses and tradeunions in order to gain access to funding for con-tinuous vocational training while avoiding discordand imbalances in competence and putting intoaction, at a European level, the agreementsreached at the EEC in the Memorandum on train-ing for sales assistants in the retail trade;

However, while repeating a substantially positivejudgement and conscious of the objective difficulties(time, finances, etc.) in which the study was effectedand which had to be taken into account, it can beconsidered insufficient in the following aspects:

the identification of training processes which tendbetter than others to combine new strategies forcompany development with new forms ofemployment for the workers subjected to training;

the attitude of the parties (companies and work-ers) with respect to training processes orientedtoward technological innovation and the conse-quences of new organizational forms at work;

the incentive structures used to start trainingactivities;

the special abilities and accumulated knowledgeat the disposal of both the entrepreneur and theemployees for new services or employment tasks;

the importance of training wo n kers as resourcescapable of enhancing the value of their own spe-cial capacities;

the identification of good training courses whichcould become points of reference for future initia-tives in continuous vocational training at Euro-pean level (ex. the Eurofiet-CECD Memorandumat the EEC on vocational training);

the measurement of the needs of persons in-terested in training activities before the backdropof the pulverization of commercial structures inItaly.

Finally FISASCAT is convinced that:a great common effort is required to overcomethe gap in backwardness and to achieve a radicalchange in the systems and in the modalities exist-ing until now.More constructive and functional interactions istherefore required between businesses and tradeunions: processes of concentration and coopera-tion in the management of training activities andthe use of mixed structures (e.g. bilateral bodies),or the promotion of other ad hoc activities ca-pable of encouraging the functions of planning,motivation, control, realization and quality in con-tinuous vocational training;

all parties interested in vocational training willhave to radically modify their own role, abandon-ing rigid bureaucratic forms in favour of criteriamore in line with a more active labour policy ofinnovation, company development, a more quali-fied socio-professional culture among workers,the prevention of difficulties and conflict, thecreation of a society with more respect for all andmodelled around more balanced requirementsfor economic and social development.

1.2 Comments from UILTUCS-UIL on theresearch report by Antonio Zilli andFabrizio ZampagniUILTUCS expresses positive appreciation for boththe quality and the quantity of the analyses and theobservations in the report, which, independently ofany judgements of merit, supply the trade unionorganizations with information which the compa-nies involved had never before supplied to such agreat extent nor in such detailed terms.This emphasizes the gap between the sophisticatednormative information system and the poor prac-tice in effectively supplying information.

However, the trade union recognizes that until afew years ago, its position on continuous vocationaltraining was one of indifference. In the last 3-4years there has been an atter to recover partof the delay accumulated thro gh union commit-ment in collective negotiation and promoting initia-tives.This focus of attention should for the most part beattributed to the social dialogue which developed inthe EEC during the preparation of the CECD- Euro-fiet Memorandum on vocational training in theretail business.

95

96

The philosophy and content of the memorandumwere included in the National Collective LabourContract for the retail trade (CCNL), becominga contractual norm which companies must adhereto.

However, as is amply demonstrated in the report,these vocational training norms, as indeed theprovision of information to and the participation ofthe trade unions in training processes, are not yetoperative. This lag. is caused by many factors, butabove all by:

. the lack of education and willingness on the partof the negotiating parties to consider vocationaltraining as an investment rather than a cost;

. the absence of adequate support mechanismsand structures to sustain the declared intention ofthe negotiating parties to act jointly in launchingcontinuous vocational training.

Consequently, research into continuous trainingactivities with the purpose of identifying projects ofan exemplary, transferable nature is qualified bytwo crucial facts from the very beginning:

The national school system and the regional train-ing system, where initial and basic technical voca-tional qualification for the retail sector is quantita-tively poorer than in other sectors. Furthermore itis qualitatively disappointing with respect to thevocational requirements expressed by companiesand necessary to the "maintenance" and "devel-opment" of vocational levels;

The still basically generic definition of the signifi-cance of continuous training as distinct from initialbasic training and refresher courses for speciali-zation or reconversion. Functional continuoustraining to sustain and promote human resourcesin the process of adaptation to the new contentsand methods of work which require innovativemodels of professional skills as "process opera-tors". In other words, operators able to respond tofunctions such as the assumption of responsibil-ities for objectives results, the complexity, thecoordination and management of relations, theregulation of variations, flexibility, functionality,technological adaptation (...) .

From these critical prerequisites it can be seen thatcompany training, as revealed by this study:

while being particularly enterprising and dy-namic, fulfils a mainly compensatory function atentry levels and thus has difficulty in designingand applying proposals for continuous training;

demonstrates itself to be a conceptual and explicitmodel hat continuous training, as an efficientinstrument in

selecting the differing categories of trainingprocesses and products in current experienceand in the case in point - in distinguishing theconnection with continuous training in the com-pany cases analyzed;

91

evaluating the degree of efficiency of continu-ous training in relation to current developmentof professional systems and new models of pro-fessional quality;

comparing practical application of continuoustraining activities with reference to the recom-mendations proposed by the "European Memo-randum on Training in the Retail Trade".

Analysis of the case studiesObservation of data on training strategies and pro-grammes reveals an ample, variegated range oftraining typologies and products.

Company information is, however, insufficient toattempt further selective analysis to recognize sig-nificant continuous vocational training activities.

In some cases reference is made to "total quality"projects but little explanation is given of the mean-ing of the term. Reference to "total quality" is madeabove all in relation to service to customers. It fol-lows that training intervention seems to aim more attaking care of the public image of the companythanat the substance and the effective quality of the ser-vice supplied by the business.In fact, with regard to "social and behavioural com-munication", definitely a necessary element of pro-fessional quality and training content which alone isnot sufficient to give 'genuine quality service",important, necessary and fundamental aspects areignored, among these:

knowledge of the product, required to providevalid advice to customers;

knowledge of the legislative, administrative andethical norms regarding hygiene and productsafety and/or its manipulation;

knowledge of new information terminology andits interrelation in network systems to give aware-ness of and a basis to respective duties withinthe organization of company work by sales assis-tants.

The prevalence of provisions and aims relating topsycho-social and behavioural training (communi-cation, company image, internal atmosphere, moti-vation towards participating in the company as afunction of the quality of service and orientation tothe customers) is evident, rather than provisions andaims regarding the transmission of specific technicalknowledge and capacities.

Overcoming the traditional dichotomy betweentechnical-vocational training and behavioural-managerial formation is both useful and justified.Just as appreciable is broadening the scope of com-pany training from the overly restricted area ofmanagers and management trainees to the otherprofessional groups within the personnel.

But all of this does not seem to correspond to o bal-anced integration between behavioural and tech-nical training. There is no evidence (also because ofthe short duration of most programmes) of activities

designed to treat the simultaneous, complex devel-opment of functional-interfunctional competence("knowing" and "knowing how") and behaviouraltraining ("knowing oneself").

There is a trend towards doing everything on anin-house basis, without the involvement of or pre-ventive consultation with the trade union organiza-tions in the planning phase, and even less in the ex-ecution of training activities.

Programme typologies and trainingobjectivesThe typologies of the training experiences present-ed can be generally described as follows:

Basic initial training (preponderant);

Monothematic refresher courses (on specificdepartmental or managerial technical functions);

Behavioural training (1 on organizational sub-system functions, 2 on behavioural and profes-sional role functions);

Advanced technlogy training (which appears to alesser extent and with insufficient characteristics,on telematic systems, scanner and terminal man-agement, checkout technology, logistics of spacemanagement and merchandising);

Self-training (with innovative audiovisual didacticaids using interactive multimedia techniques, theusefulness of which is not ours to evaluate).

The information supplied by this study permits aglimpse of the "initial objectives":

objectives of results and functionality, inherent tothe organizational sub-system (of the "qualityprojects" type, halfway between "quality circles"and genuine training);

objectives of results and behaviour inherent toprofessional roles (especially for sales assistantsand department heads);

communication objectives tending to motivateand create cons'nsus on strong and explicit indi-cations of 41 ...ompany image and companystrategies.

The specific didactic training objectives, which rep-resent o quota of significant contribution towardsthe recognition of the validity of the training onoffer, remain in the shadow; in other words, wehave too little information on the real extent oftransformation of the initial objectives of the com-pany into effective enrichment of the professionalreservoir, measurable in knowledge (facts, pro-cedures, concepts, general principles in problemsolving), behavioural (limitations and heuristics).

ConclusionFor the purposes of the study, more specific, ana-

lytical company information would have been use-ful to control the degree of exemplariness andtransferability of the continuous training program-

mes and typologies examined.In particular, there is a lack of information for theevaluation of the significant factors of continuoustraining:

the type of vocational training (data on types,duration, target groups and categories);

the recursivity (data on diversification of the train-ing offered to the same user category);

the permanence (data on annual volume bytypology and activity and investment plannedagainst turnover).

The following information would also have beenuseful:

the method of analysis of needs;

the control-evaluation system (didactic resultsand methods, reactions of participants)

With its limits and qualities, this report represents aninteresting contribution to stimulate and to indicatethe possible areas for action in the Italian context.

It might be applied to a less restricted field of casesand more detailed analyses than those produceduntil now, on the initiative of the social parties, inorder to render it capable of giving body, substanceand structure to effective action on the topic ofvocational training.

We cannot state the extent to which this reportmight contribute significantly to the definition ofEuropean policy stipulations on continuous trainingin the retail trade.

It is our opinion that, in order to give concrete sup-port to the realization of continuous training in thesector, it is necessary to continue the processes ofcomparison and common decision-making be-tween companies and trade unions.

To this end it would also be opportune if communityprogrammes could be oriented towards providingsupport and development to company and sectorprojects and programmes based on the practicalrealization of bilateral instruments between thenegotiating parties for planning, programming andexecution of continuous training activities.

1.3 Comments from FILCAMS-CGI L onthe research report by Claudio Troves

General commentsIt is to be hoped that:

greater emphasis will be given to the role thathypermarkets have acquired in the distribution net-work: the very consistent increase of this type ofsales outlet cannot be ignored (70 structures oper-ating as at 1/ 1/1992, with most of the growth con-centrated in the last 5 years) and the location ofthese establishments preferably in "border" areas(Piedmont, Lombardy, the Veneto and Friuli) lead tothe conclusion that the typological and organiza-tional innovation is significant and that it will be

,)Al)

3.

97

reinforced by the behaviour of competing foreignchains after 1/ 1/ 1993.

increased focus will be aimed at the connectionbetween the effects of Italian legislation on workand the links existing (or rather lacking) between theworld of work and the training system: there hasbeen a substantial change from numerical workplacement which in itself rendered almost uselessemphasis on the role of training, to increasing de-regulation (from 1983 to 1991), with the trainingsystem nevertheless not succeeding in better match-ing demand for and supply of work. This explainsthe continuance, albeit in "contrasting" situations ofbinding or almost totally liberating legislation, of aseparate, scarcely incisive role of training, espe-cially in terms of the distribution network, which con-sists mainly of small companies.

Case studiesIn general it should be observed that, with theexception of the Rinascente Group, the comparisonbetween the merit of the various companies and thetrade union organizations is absolutely insufficient,as the companies consider that training is an areawhere they do not have to involve the trade unionorganizations: this contrasts with the Eurofiet-CECD memorandum, included in the National Col-lective Labour Contract of 14/ 12/ 1990 (CCN L), aswell as the logic of social dialogue on which FORCEtoo is inspired.

J3

Having said this, it should be noted that the conceptof "service", which is specific to commercial realityand constitutes the strategic variable in the defini-tion of the competitiveness of each company, isoften interpreted in training planning in too narrowa manner: more thought is spent on the "behaviour"of sales assistants (courtesy, good presentation,etc.) than on active adhesion by each worker to theobjectives of the company on which the workermay rely.

This results in a concept of "service" which is inde-pendent from the value of labour and its compe-tence, and thus one often ends up with repetitionthrough the hierarchy of company "ideologies"broadcast from above.

It is precisely the lack of ,alue given to social dia-logue at the basis of companies which we observewith perplexity.

We remain convinced, however, that especially atcritical moments (for example, recourse to theSpecial Fund for Income Maintenance - temporaryredundancy - or in general company repositioningin the market) it is fundamental to initiate at leastan experimental form of continuous trainingconstructed through comparison and social dia-logue.

CEDEFOP European Centre for the Development of Vocational Training

Training in the retail trade in Italy(FORCE programme)

Pafrizia Maffei, Alessandra Gelfo, Laura Marano, Daniela Tebaidi

Luxembourg: Office for Official Publications of the European Communities

1994 - 98 pp. 21.0 x 29.7 cm

ISBN 92-826-8139-4

Price (excluding VAT) in Luxembourg: ECU 8

Venta y suscripciones Salg og abonnement Verkaut and Abonnement flwArlacic KOI ouv6poptcSales and subscriptions Vente et abonnements Vendita e abbonamenti

Verkoop en abonnementen Venda e assinaturas

BELG,OVE BEL Ca

elontreur DOC.Belgisch sisrlesbredRae de so.nan l2 ist-re-seesio 42B '000 B SOC14 G2 5,2 00 26Fa. .02.51' 0' 64JettOe LancesAirJe C. Ro g1 .13- .013 t060 B 5-2.,

,02. 538 5, 691.8. 63220 84113C3C 4254.'02 53514.131Aultes d'strOute,Owonge 26noopoc4Libretti. tutopftnneEuropese boeknendeiFL. de a Le 244 Wenn.: 212

040 B,en, P 041 IS- is.Te 32 23' 04 152a 32 "35 Ci 5CDocu-814/e.venCredos11.e de a 4..286 '4 917" '4

te s s94.5a. 02 5.3 5

DANMARK

J 48 Sceullz Intormattens A SO3888p.ang '2

262.3 A4163 23 00

a Saes 43 61 s5tVa-age-e- 43 6, . 2

05 1' SCK ANC'

B undeunaepe Veag0 581-t "a e

"; Ds 345:..445

2. 2.0240'I.e. AWE GE 51B1,1.6 sr. 56'Fa. X:82 '6

Gr1E6 Ct ttGC Eleftlwroudetns SA

t. 6 et,08'C303 Ate on ,l ;34.a' 73 98 2.

tFoo:.nnCdtclet de, Eslede

538 77 2.a S 536:1 42

MundPtense Lidos SACae o 1'

2530.te o 43, 3102 -al 72 :: 5- ',cc,.415.1' 1e

re 493.4. VRI 1

Ia. 51 13 64

1.88.8 Intenecionai £6009-son de -c 32nr, 1 pa re -4

to .1 83 54 44

1,1ke.114 de le Geneeinetde Calolunetslia-eadenly,,,

485422 Re5e5-41.93 702 (.11

to .9) 3C,1a. 191 X2

AN711-Journer albs MlSe, oc dos PubL,..",Ma C4MTuney1411 osreollo.,etT, Pma,

'5 42',1,10l4l'I"e., ",

AND

Gosiernmnt Supplies Apeney4 5 2...p2.0.-132ad11.c., 2to 60 2 '

a, a' BC 545

Licosa SPA1)..l4

Case a posa 55218254,-2e

re 255 64 54 5fa 64 .25't... 4.0456 '0034

11A,12 492C14 Of 2. 43 ntt( . n

M....Penes du Inc."e se-

?, 1 41.--oc.,re 4: 8 2C44. 43(256'

NE CE HLx.L

SOU Owthedbolortnel8t 4 dna,-,con-s KC 4

SC,: EA s 58- as.2'. 3 s"

Ia. 5'6 3a

,C43'3644

I.P.M11311/C4311411Ca.ia ea Mob-8 EnR,a 0 o kt4 .

:121...0.3 CLOOt: 69 14 .4a. 69 3. 6.

Otstnbanelors de 1101Seeuend. Ld

0,8:8 Berland SAoas te-2 nr s e 1

Ada,10 3'P' '30 Anvara (Joe.l 0, 49 56 250tete. 5936 FR AC131 2665.13

n . _ .Nino Bode,..1450 (4,- 6. ,

fr.. 'ANA 5121+it . 6') 0312al. e 16.,1

/1 .9

Mont ache Vetted,und Unentsaelsbutenenc -p

A 255-re 53. 1.

AS ateine.nen lorses.upts.

rtfen into Centee

11C:. tn.

61.1 AP

E: SoSS5 SV.Z74 RA SRAI1

OSEC

6.1-888,2,a3 le 65: 8521 Jet.

2- 26554494. 365 34 .3

ar

(Loupes. sibs.. DKLtd

V. 213 45

.2 9L tnA

105 CR

:':14-5;5s-a 37 its 6446: 15 2' 68

,, 457A0

Euto 540,

1.

Bo.neSS Foundel.n22a 1042

7 a.. ti 99 93

rt628 261151

CCEC

.7 65.6

58v41 Teeencellatrant

,7

- -T;2,t,C61,4sPet ot Cutrnepe and

1

P 143.. tsars PensCow rr. I., Ore ..

At'

3.11535 SO 5. .5.

a c102? VS,t,

Roy Internetione

'30056M

le A.. 6' 3C". 1456 CB

3 641161" 39

LC, R4.0011 AS`

Middle East Observet

4' S-o S'` 44. 24 36 '",

u.s 'LC sia( 5.24 MAP:ca.:As.411.

UI4IPUB

4" 5 Assn-si 13,ta.. 4.1t

4. re 48. IL:- 7', 469.!22` 4,2 '

pt.o, ant

Renout Publishing Co Ltd;64

0-3.8 7) 2 0 iRrele 51 41. A).1 4.3 '4, 54 t.

e.. 7E14'63

twnt., duaticsnon.

: Nebo,t,. a 3344

'e 3 4. 615.I 2, I 49

K ,06wnrya Comp.n, Ltd

-

Jason! Ottoonniont) Be. Cle., 8

Leger Lavery kences LIdtie Ap ,

44.8 st glad

4.

5 eito

01111. Cos pat, e.nens o11.5184des Cetnuneorta .8 oPa1943

.8 Oen anI P335 16892.4-51

411123 ITeal PVEVE 1U 1324Pea la 65 7143 68 11

BEST COPY AVAILABLE

European Centre for the Development of Vocational TrainingJean Monnet House, Bundesallee 22, D-10717 BerlinTel.: 49-30+88 41 20; Fax: 49-30+88 41 22 22; Telex: 184 163 eucen d

Price (excluding VAT) in Luxembourg ECU H 1:Br. c'P-826-8139-4

* * OFFICE FOR OFFICIAL PUBLICATION:* * OF THE EUROPEAN COMMUNIT ILS

OPL-2985 Luxembourg 9

BEST COPY AVAILABLE

111111681398

institution report no pub date 94 varies. …1. general description of the firm 1.1 general...

Documents